RBA’s Lowe: Want to see inflation above 2% for number of quarters
|Commenting on the inflation outlook, the RBA Governor Phillip Lowe said that he “wants to see inflation above 2% for a number of quarters.”
The central bank “needs to see wage growth sustainably above 3%,” Lowe added.
Additional comments
“Need to keep jobless rate in low 4's for a sustained period.”
“Assume borders will be gradually opened over the coming year.”
“Unlikely cash rate will be raised before 2024.”
“Need much more positive forecast for wage growth in order to expect a rate hike in 2023.”
“Opening borders would lessen upward wage pressure for some pockets of labor.”
“Would need to see unequivocal evidence of faster wage growth to hike in 2023, does not seem likely.”
“Not thinking of rate increases in 2023.”
“Need inflation back at the target to rebuild a rate buffer for future crises.”
“Looking very closely at bank lending standards on home loans.”
“Do not see any deterioration in standards at moment.”
“Sooner we all get vaccinated the better the economic recovery will be.”
“Assume most of us will be vaccinated, have had a first shot by end of year.”
“Expects further upward revisions to our economic forecasts.”
Market reaction
AUD/USD is trading close to the weekly highs of 0.7599, digesting the latest remarks from the RBA Governor Lowe. The spot was last seen changing hands at 0.7591, up 0.82% on the day.
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