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 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.
