“Now is not the time for higher interest rates, the Reserve Bank of Australia (RBA) Governor Phillip Lowe said while delivering a speech titled “Covid, Our Changing Economy and Monetary Policy” at a webinar hosted by the Committee for Economic Development of Australia.
Additional quotes
Fall in global interest rates had ‘gravitational pull’ on Australian rates.
Resisting that ‘pull’ would have put upward pressure on Australian dollar.
Could have rapid rebound if we get further good news on the health front
Pandemic will likely leave an extended period of higher unemployment.
Challenge ahead more likely to be creation of jobs, than controlling inflation pressures
Recent local data better than expected, easing of restrictions lifted spirits.
We are now on the road to an economic recovery.
QE to affect capital flows, exchange rate and asset prices.
more to come …
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