Some final remarks by RBA governor, Philip Lowe, in Sydney
- There is a benefit in sticking with the current target
- Says more borrowing is a risk of extended period of low rates
- Does not see a rapid rise in credit growth
This is probably as good a time to remind you that inflation - via RBA's preferred measure - hasn't fallen within the central bank's target band of 2% to 3% since Q4 2015.
He's continuing to reiterate that further easing policy will come if needed and is tying that to getting inflation back on track, as seen from his comments earlier here as well.
We'll get the latest Q2 CPI data from Australia next week on 31 July and that is expected to show inflationary pressures hold similar to what they are in Q1 (trimmed mean reading expected at +1.6% y/y).
As such, with other major central banks also getting on the easing train, expect the RBA to act sooner rather than later in the race to the bottom.
