Governor Phillip Lowe of the Reserve Bank of Australia (RBA) is back on the air, answering questions from the audience after his address on the labor market and monetary policy at a webinar organized by the Economic Society of Australia on Thursday.
“I’m not thinking about negative rates.”
“In future cycles, fiscal policy will have to play a stronger role.”
“QE will almost certainly be required in future business cycles.”
“However, there are limits; central banks cannot continue to buy assets.”
“Does not believe there is a compelling rationale for changing the CPI objective.”
“Getting wages above 3% will take a long time.”
“Perhaps markets don’t trust our reaction function.”
“Won’t hike rates to stifle housing price increases.”
As RBA Lowe’s Q&A session begins, the AUD/USD bounces roughly 10-pips. The price is currently trading at 0.7465, down 0.21 percent on the day./n
