Reserve Bank of Australia Governor Philip Lowe speech at the Anika Foundation Lunch
- RBA board sees no strong case for near-term rate move
- Says next rate move likely to be up if economy evolves as expected
- Timing of move depends on unemployment, inflation moving to middle of target range
- Says natural for rates to eventually return to more "normal" levels
- Financial risks moving in right direction as house prices, borrowing eases
- Wages picking up in pockets of labour market, broader rise will be gradual
- Says expects inflation to rise close to 2.5 pct in 2020
- Unemployment to reach 5 pct over next few years
- Says 5 pct is conventional estimate of full employment, but could go lower
- Latest data consistent with forecasts for economic growth bit above 3 pct in 2018/2019
- Says Australia's demographic profile more positive than of many other countries
- Higher migration has led to faster population growth than in other advanced economies
- Migration one reason economy has experienced higher average growth
- Migrants tend to be younger, changing our demographic profile in a positive way
The comments from Lowe on his outlook for monetary policy and the economy are unchanged from past weeks, months …. looks like we are goin' nowhere fast …
Probably a good heads up to the SoMP coming up on Friday.
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Background to this here:
