RBA governor Lowe is appearing before the House of Representatives’ Standing Committee on Economics in Canberra. He is delivering a prepared text and along with colleagues will be answering politicians’ questions for about 3 hours.
Key comments
- Says its reasonable to expect a period of low rates.
- Signs economy has reached a gentle turning point.
- The economy will be below inflation for some time.
More to come…
FX implications:
Should weigh on AUD. The market is waiting to hear if he is questioned on the RBNZ’s aggressive stance and whether the RBA is considering QE.
Note: Later in the day, the RBA also releases its quarterly Statement on Monetary Policy at 11:30am Syd.
“Tuesday’s brief statement indicated fairly modest changes compared to May. The RBA’s “central scenario is for the Australian economy to grow by around 2 ½ per cent over 2019 and 2 ¾ per cent over 2020.” Inflation is expected to take longer to return to target, “a little under 2 per cent over 2020 and a little above 2 per cent over 2021,” analysts at Westpac explained
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