Reserve Bank of Australia Governor Lowe continuing
- discussed the case for lower interest rates 'extensively' during the February meeting
- says does not think we would enhance the medium-term benefits to the economy with interest rates
- we are doing the best we can do to preserve medium term macro stability of the economy
- it's "just not practical" to get inflation back to target band by end of 2021 just with monetary policy
- the balance tips towards lower interest rates if unemployment increases
Huh. Is macro stability at below par growth really what the Bank is trying to achieve? And is the RBA happy with stable below target inflation?
Dep Gov Debelle:
- impact of rising housing prices, construction revival may well surprise us on the upside for growth and inflation
I bolded that comment above, we know this already but never hurts to be reminded.
