The latest comments are crossing the wires from the Reserve Bank of Australia (RBA) Governor Philip Lowe, as he speaks on the topic “The Economic Outlook and Monetary Policy” at ESA QLD 2019 business lunch.
Key Headlines:
To consider a rate cut at June meeting, Aussie gives up 0.6900.
Lower rates would support employment, help lift inflation toward target.
Need further improvement in labour market, jobless rate to fall under 5%.
Economy can support unemployment rate under 5% without inflation concerns.
Says recent data make it less likely labour market will surprise on upside.
Our forecasts for growth, jobs would have been softer without assumption of rate cuts.
Also scope for fiscal policy, structural reform to boost employment.
Looking for tax relief to help lift household income growth.
Sees only limited inflation pressures across much of the economy.
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