An article in the Australian press today with their take on the speech by Phillip Lowe in Sydney this morning: RBA: High $A good for economy
- “Had we not experienced the sizeable appreciation (in the value of the Australian dollar) over recent years, it is highly likely that the economy would have overheated and that we would have had substantially higher inflation and substantially higher interest rates,”
- Dr Lowe said Australians were collectively saving $90 billion more a year than they were in the mid-2000s … the increase in savings had also helped keep inflation around the middle of the RBA’s target range of two to three per cent during the past five years, allowing the central bank to cut the cash rate to its equal lowest level on record.
