The Reserve Bank of Australia's governor, Phillip Lowe, has said the central bank is prepared to do more if it is required and that negative policy rate benefits outweighed by costs.
Here is a live link of Lowe before the House of Representatives Standing Committee on Economics.
Key comments
Close attention to asset prices, household debt.
Still a high degree of uncertainty about the outlook.
Unemployment is a bigger risk than excess borrowing.
Economic outlook is significantly better than 3 months ago.
Unemployment is likely to peak somewhere in 7’s, but we need to get it to 4-point-something to get inflation higher.
Won’t adjust rates until inflation in 2-3% range.
Have open mind on extending QE bond-buying.
Will be looking at the economy and what other central banks are doing.
AUD/USD is perky following a risk-on session on Wall Street, collecting bids in the 0.7340s and rallying to a current high of 0.7380.
Looking ahead, we have Gross Domestic Product for the third quarter which is expected to support risk appetite even further due to that Australia's rebound out of an economic recession.
Australia’s Q3 GDP report is due at 11:30 am local time.
''The COVID pandemic triggered a severe recession over the first half of 2020, with output -0.3% for Q1 and -7.0% for Q2,'' analysts at Westpac explained.
''The second half of the year sees the virus under control locally (but only after the 2nd lockdown in Victoria) and restrictions being reversed.''
''We expect Q3 GDP to expand by 3.0% (-3.9% year) but with plenty of scopes for surprise and risks tilted downwards. The median forecast is 2.5%Q, -4.4% year.''
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