Lowe: Expansion policy is coming to an end around the world

21 Sep 2017 10:32 AM

Philip Lowe, Governor of the Reserve Bank of Australia, made the following statement:

  • High interest rates abroad have no automatic effects on Australia.
  • The Aussie's Flexibility gives the Australian Reserve Bank considerable independence on the timing of domestic policy.
  • Rising household debt means that consumption will be severely affected by higher interest rates.
  • The Reserve Bank of Australia has not sought to over-regulate monetary policy.
  • The economy is improving but obviously there are many risks.
  • Monetary policy plays an important role in supporting the economy during the transition period.
  • Needs a higher level of productivity to lift real per capita income.
  • The expansion policy in the world is now coming to an end.
  • The Australian economy is currently on the path of low unemployment rates and lift inflation to the midpoint of the target range.
  • Investment boom in the mining sector is nearing an end.
  • Interest rates are likely to rise more than cut.
  • I see no direct link between wage growth and monetary policy.
  • Workers do not get their traditional share of income.
  • It's hard to see inflation back above 2.5% anytime soon.

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