RBA Gov. Lowe says demand is too strong relative to supply

From Reserve Bank of Australia Governor Lowe, his appearance before the Australian parliament's Senate Economics Legislation Committee (Additional Budget Estimates).

• Worries about housing supply as population grows
• Expect to see rising rental pressure over next year
• Demand too strong relative to supply
• Unsure about labor market, price response to supply shock
• Fiscal policy has no discernible impact on monetary policy
• Wage growth is consistent with inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term returning to taregt

On that demand too strong re supply. There is basically nothing the Reserve Bank of Australia can do about supply issues in the economy, but what they can do is try to reduce demand by jacking up interest rates.