The Reserve Bank of Australia (RBA) Governor Phillip Lowe is back on the wires now, responding to the Q&A session following his speech on the labor market and monetary policy at a webinar hosted by the Economic Society of Australia on Thursday.
Key quotes
“Not considering negative rates.”
“Fiscal policy will need to play a bigger role in future cycles.”
“Likely QE will be needed in future business cycles.”
“But there are limits, central banks cannot keep buying assets.”
“Does not see a convincing case for a change to the CPI target.”
“Will take a long time to get wages above 3%.”
“Maybe markets do not believe our reaction function.”
“Will not raise rates to choke off housing price rises.”
“Modest scaling back in bond buying reflects economic progress.”
Market reaction
AUD/USD bounces about 10-pips, as RBA Lowe’s Q&A session gets underway. The spot now trades at 0.7465, still down 0.21% on the day.
