Reserve Bank of Australia Governor Lowe is testifying in parliament:
Lowe says wage growth has not been a source of inflation
- RBA is in data-dependent mode
- monetary policy in in restrivice territory
- there is not a single variable that drives RBA policy decisions
- inflation expectations are well anchored, can't take this for granted
- RBA is serious about inflation target, want also to preserve labour market gains
- if inflation gets entrenched it would lad to higher interest rates and higher unemployment
more to come
