Reserve Bank of Australia Governor Lowe
- says committed to do what we reasonably can, with the tools we have, to support the recovery
- the board will not be increasing the cash rate until actual inflation is sustainably within the target range
- says it is not enough for inflation to be forecast to be in the target range
- reasonable to expect that further monetary easing would get more traction than was the case earlier
- we do not expect to be increasing the cash rate for at least three years
- we have been considering what more we can do to support jobs, incomes and businesses in Australia to help build that important road to the recovery
- board has not yet made any decisions
- we do not expect to be increasing the cash rate for at least three years
- to the extent that an easing of monetary policy helps people get jobs it will help private sector balance sheets and lessen the number of problem loans
- a recovery in Australian economy is now underway and we can look forward to this continuing
And for the full text:The Recovery from a Very Uneven Recession
Once again Lowe urging further fiscal support and not ruling out his Bank providing further monetary support. He is signalling there is more he will be doing, this for example:
- "our balance sheet has increased considerably since March, but larger increases have occurred in other countries. We are considering the implications of this as we work through our own options."
