Today RBA governor Philip Lowe gave a keynote speech titled Inflation Targeting and Economic Welfare
Here are the key points:
- RBA governor Philip Lowe says the board is prepared to cut interest rates further if the economy does not grow fast enough
- “It is highly unlikely that we will be contemplating higher interest rates until we are confident that inflation will return to around the midpoint of the target range,”
- Even if it does not cut rates, Mr Lowe said “it is reasonable to expect an extended period of low interest rates”
- The RBA believes that greater participation in the labour market is a key factor keeping wages growth and inflation low
- “In my view the evidence does not support the idea that a change to our inflation target would deliver better outcomes than achieved by our current flexible inflation target”.
- “We are living in a world of low and stable inflation and low unemployment. It is useful to remind ourselves of this sometimes.”
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|2022 Fixed||2022 Floating|
|Maturity Date||9th June 2022||9th June 2022|
|Type / Rank||Senior Unsecured||Senior Unsecured|