Phillip Lowe, the Governor of the Reserve Bank of Australia, stated that he is concerned about the inflation outlook “wants to see inflation rise above 2% for several quarters. “The central bank requires wage growth to remain over 3 percent for a sustained period of time.” “rcent,” Lowe continued.
“We need to keep the unemployment rate in the low fours for a long time.”
“Assume that borders will open gradually over the next year.”
“It’s quite unlikely that the cash rate will be raised before 2024.”
“Wage growth forecasts must be significantly more favorable in order to predict a rate hike in 2023.”
“Opening borders might alleviate rising wage pressure in some labor markets.”
“Would need incontrovertible proof of faster wage growth to raise in 2023, which does not appear to be the case.”
“I’m not planning any rate hikes in 2023.”
“Inflation must return to target in order to re-establish a rate buffer for future crises.”
“I’m paying close attention to bank lending guidelines for home loans.”
“At this time, I don’t perceive any decline in standards.”
“The sooner we all get vaccinated, the faster the economy will recover.”
“Assume the most of us will be vaccinated and have received our first injection by the end of the year.”
“Further upward changes to our economic forecasts are expected.”
As the market digests RBA Governor Lowe’s new statements, the AUD/USD is trading near the weekly highs of 0.7599. The last time the spot changed hands, it was at 0.7591, up 0.82 percent on the day./n
