Justin Smirk, Research Analyst at Westpac, notes that RBA Governor, Philip Lowe, at the ECB Forum on Central Banking has reminded the audience that the RBA has a triple mandate but also believes that household debt is still more important than low inflation. Key Quotes “Governor Lowe opened his comments with the observation that he felt he was the odd one out; a central bank governor that had not experienced negative interest rates, had avoided implementing QE and does not provide forward guidance.” “But he then noted the striking similarity in the Australian economy with most other economies in that inflation is presently low, or the target range, and that wage outcomes continue to disappoint despite a tightening labour market.” “His most important points were in reference to observations that are quite unique to Australia.” “The first was that he reminded everyone that the RBA does not have a single, or even double, mandate but a triple mandate. They are price stability (as defined by the stability of the currency), full employment, and the economic prosperity and welfare of the Australian people.” “He stressed this as why he was comfortable with inflation being under the band and felt no pressure to cut rates in the hope it might stimulate more inflation.” “With wages growing at just 2%yr the Governor noted that with productivity it is very likely that inflation will continue to undershoot the target for some time. In this case, he argued, that patience was the best policy.” “If there is any policy takeout it is that the Governor was emphasising a clear on ‘hold for as long as required’ policy stance.” “The RBA is clearly comfortable with the current settings and it does not believe that it is in the interest of the welfare of the nation to propose a rate cut any time in the foreseeable future.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Gold trips into a new six-month low, grinding towards $1,250 FX Street 5 years Justin Smirk, Research Analyst at Westpac, notes that RBA Governor, Philip Lowe, at the ECB Forum on Central Banking has reminded the audience that the RBA has a triple mandate but also believes that household debt is still more important than low inflation. Key Quotes "Governor Lowe opened his comments with the observation that he felt he was the odd one out; a central bank governor that had not experienced negative interest rates, had avoided implementing QE and does not provide forward guidance." "But he then noted the striking similarity in the Australian economy with most other economies in that… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.