Reserve Bank of Australia Governor Philip Lowe, the topic of his speech is Inflation and Monetary Policy
- Says recent data suggest economy adjusting reasonably well
- End in sight for slump in mining investment, commodity prices have risen recently
- Says watching employment, stability of financial system when setting rates
- When judging if inflation is too low, have to consider the public interest
- Have to balance returning inflation to target against health of household finances
- Says inflation expectations have declined, but not at unprecedented lows
- Need to guard against inflation expectations falling too far, Q3 CPI will be important update
- Labour market is mixed, jobless rate down but underemployment high and wages weak
- Says home prices rising briskly in some areas, falling in others
- Rental growth very low, big increase in housing supply still to come
- Will, of course, continue to review rates at coming policy meetings
- Board conscious that rates already very low historically, bad for savers
Quick Headlines via Reuters
Familiar themes there from Lowe, let me pick out a few:
Economy adjusting reasonably well ... End in sight for slump in mining investment ... Commodity prices have risen recently ... watching employment, stability of financial system when setting rates ... Q3 CPI an important update ... Labour market is mixed, jobless rate down but underemployment high and wages weak ... big increase in housing supply still to come
Sounds like a reasonable and balanced assessment from the Gov.
Reading that lot it says to me clearly that more rate cuts are not ruled out, but that November does not appear a strong candidate for the a cut. Comments welcome!
Full text here: Inflation and Monetary Policy
The next RBA policy meeting is November 1
