Reserve Bank of Australia Governor Lowe is speaking at Australia's National Press Club in Sydney.
The topic of his speech is
- Monetary Policy, Demand and Supply
Headlines via Reuters:
- Decision to hold rates steady does not imply interest rate rises are over
- Board expects that some further tightening of monetary policy may well be needed
- Prudent to hold rates steady this month to allow more time to assess impact of past increases
- At our next meeting, we will again review the setting of monetary policy and updated forecasts
- Board is conscious monetary policy operates with a lag, of economic uncertainties
- Pause is consistent with our practice in earlier rate cycles
- Was common to move rates multiple times, then wait for a while and move again if necessary
- Increasingly clear higher interest rates are having an impact on household spending
- Wage outcomes have been consistent with inflation returning to target
- Recent high inflation has not been driven by excessive wages growth
- Inflation has not been driven by ever-widening profit margins
- While supply-side factors are influencing how fast inflation declines, they cannot be a reason to tolerate higher inflation on an ongoing basis
- Banking stress is another headwind for the global economy
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Yesterday from the Reserve Bank of Australia:
- RBA leaves cash rate unchanged at 3.60%, as expected
- Full statement of the RBA April 2023 monetary policy decision
- RBA heads to the sidelines, hints that rates may have or are close to peaking
- The aussie extends its post-RBA decline
The RBA's cash rate has been playing catch up the CPI.
