The Australian central bank is prepared to ease monetary policy again if needed to help boost job growth and stoke inflation, said the RBA Governor Philip Lowe this Tuesday – hours after cutting the cash rate to a historic low of 1%.
Key Quotes:
“¢ Recent cuts in rates will help lower unemployment, reduce spare capacity.
“¢ Will closely monitor how things evolve over the coming months.
“¢ Board is aware there are some downsides to lowering rates.
“¢ Sees options other than monetary easing, including fiscal support.
“¢ Appropriate for govt. to think about further infrastructure investment.
“¢ Passage of low and middle-income tax offset to support incomes.
“¢ Expects solid upswing in the resources sector, high iron ore prices helping.
“¢ A$ at the bottom end of the range, helping support the economy.
“¢ Sino-US trade dispute means risks to the global economy tilted to the downside.
“¢ Investors expect rate cuts by all the major central banks.
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