RBA Lowe: Cash rate not expected to be raised for at least 3-years
|A fresh easing package is expected to be deployed at Reserve Bank of Australias November meeting, with most looking for a combination of a cut in the cash rate target.
Today, the RBA's governor Philip Lowe has been speaking at a city conference where he has stated that he does not expect to be raising the cash rate for at least three years.
Key comments
Lowe says committed to doing what we reasonably can, with the tools we have, to support the recovery.
Says the board will not be increasing the cash rate until actual inflation is sustainably within the target range.
Says it is not enough for inflation to be forecast to be in the target range.
Says reasonable to expect that further monetary easing would get more traction than was the case earlier.
Says we do not expect to be increasing the cash rate for at least three years.
Says we have been considering what more we can do to support jobs, incomes and businesses in Australia to help build that important road to the recovery.
Says the board has not yet made any decisions.
Says we do not expect to be increasing the cash rate for at least three years.
Says the board has not yet made any decisions.
Says a recovery in the Australian economy is now underway and we can look forward to this continuing.
Says all recessions are uneven, but this one has been especially so.
Says recent budget provided welcome further support to the economy.
Says recovery has been strongest in western Australia – ''so much so that in our business liaison we are hearing reports of some labour shortages.''
Says increased government borrowing is entirely manageable and affordable and it is the right thing to do in the national interest.
Says household income is likely to decline in the December quarter as the unemployment rate increases and government support becomes more targeted.
Says it is entirely possible that as restrictions ease, people will choose to draw on their accumulated buffers to sustain and increase their spending.
AUD/USD update
The AUD/USD pair traded in the 0.7164 area on the comments, steady following a sour tone of Wall Street.
Eyes are on September employment report released later today.
- AUD/USD Forecast: Waiting for an update on the Australian employment situation
- Australian Employment Preview: September job losses to flag RBA rate cut
AUD/USD technical analysis
The daily chart offers a bearish outlook below trendline support:
About Philip Lowe
Philip Lowe replaced Glenn Stevens as governor of Australia’s central bank. Lowe was the Deputy Governor of the Reserve Bank of Australia, a position he held since February 2012.
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