Breaking: RBA's Lowe: Interest rate outlook is more evenly balanced, Aussie drops to 0.7175


The Reserve Bank of Australia (RBA) Governor Phillip Lowe is on the wires now, via Reuters, making a scheduled speech at the National Press Club, in Sydney.

Key Headlines:

Interest rate outlook is more evenly balanced.

Lower rates might be appropriate if unemployment rises, inflation stalls.

Probabilities on next rate move "appear to be more evenly balanced".

There are scenarios where the next move in rates is up, others where it is down.

Board does not see strong case for a near-term change in cash rate.

Will be monitoring developments in labour market closely.

If jobs and wages rising, will be appropriate to raise cash rate at some stage.

Lower rates might be appropriate if unemployment rises, inflation stalls.

In position to maintain current policy while assessing shifts in global economy, household spending.

Downside risks to domestic economy have increased.

Still expect economy to grow at reasonable pace over next couple of years.

Sees economy expanding by around 3 pct in 2019, 2.75 pct over 2020.

Expects Q4 GDP to be stronger than surprisingly soft Q3 outcome.

Sees unemployment declining to around 4.75 pct over the next two years.

Underlying inflation to rise to about 2 pct later this year, 2.25 pct by end of 2020.

Household consumption expected to grow around 2.75 pct over next couple of years.

Royal commission on banking recommendations on credit "balanced and sensible".

Had some concerns tightening of credit had gone too far.

Seeing a manageable adjustment in housing market, some correction was appropriate.

While global risks have increased, central scenario still positive for Australia.

Media reporting on volatility in financial markets seemed "overly excitable".

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD eases toward 1.1050 amid fears of US-EU trade war, mid-East flare up

EUR/USD has kicked off the week with a slide toward 1.1050, close to its closing levels on Friday. Fears of US tariffs against the EU and the fallout from the attack on Saudi oil installations weighs.

EUR/USD News

GBP/USD drops to around 1.2450 ahead of Johnson-Juncker meeting

GBP/USD is trading closer to 1.2450, lower. UK PM Johnson will meet EC Commission President Juncker to discuss Brexit amid reports of progress. Tensions in the Middle-East and uncertainty ahead of the Fed impact markets.

GBP/USD News

USD/JPY looking to close the bearish opening gap amid risk-off

USD/JPY gapped down to 107.44 on Monday’s open as risk appetite is diminished following the attack on Saudi Arabian oil facilities. The spot now trades near 107.80, aiming to close the bearish opening gap ahead of a big week. 

USD/JPY News

Gold prices shot higher by over 1% in risk-off start to the week

Gold prices have shot higher in the open this week due to the increased tensions in the Middle East following the attack on Saudi Arabia’s oil and gas facilities in Abqaiq which has suspended half of the kingdom’s processing.

Gold News

Forex Today: Oil prices skyrocket after attack on Saudi installation, Chinese economy slows, Brexit talks continue

Here is what you need to know on Monday, September 16: A drone attack on a Saudi oil facility knocked down around 50% of the Kingdom's output and 5% of global production.

Read more

Forex MAJORS

Cryptocurrencies

Signatures