RBA's Lowe: Further monetary easing may well be required
Tuesday, 24 September 2019 17:33 WIB | FISCAL & MONETARY |RBA

In his speech titled 'An Economic Update' to the Armidale Business Chamber, Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated that further monetary easing could be required.

"The Board is prepared to ease monetary policy further if needed to support growth, employment, inflation goals," Lowe said ahead of next week's monetary policy meeting. "It's likely an extended period of low interest rates will be required in Australia."

With the initial reaction to Lowe's comments, the AUD/USD pair gained traction and was last up 0.4% on the day at 0.6800. Below are some additional key takeaways, per Reuters.

"Can't ignore structural shifts in global interest rates. If we did seek to ignore these shifts, our exchange rate would appreciate."

"Global uncertainties, weak household consumption, record drought contributing to Australia growth slowdown."

"Gentle turning point for economy has now been reached, strength and durability of pick-up remains to be seen."

"Expecting a modest pick-up in economic growth in the quarters ahead led by low rates, tax cuts, weaker aAUD, government spending."

"Strong rates of employment growth can be sustained without inflation becoming a problem."

"Risks to global economy titled to the downside led by geopolitical uncertainties."

"Sino-US trade, technology dispute most prominent global risk."

"Drought hurting farm incomes, consumption and in turn overall economy."

"House price correction has affected household spending, residential construction."

"Despite these factors, part of the slowing in Australia's economy remains unexplained."

"Seeking to understand the disparity between strong unemployment growth, weak output growth."

"Inflation expected to pick up, but to remain below the midpoint of 2-3% target range for some time to come."

"Low wages growth one of the factors contributing to weak inflation outcomes."

"House price correction, slow rent growth, gov't efforts to ease cost-of-living pressures other factors."

"Fundamental long-term factors for Australia's economy remain strong, challenge is to capitalise on them."

Source : Fxstreet

RELATED NEWS

Bank of England Keeps Rates at Nearly Zero and Says Could Expand Asset Purchases if Necessary
Thursday, 26 March 2020 19:22 WIB

The Bank of England voted unanimously to keep interest rates at 0.1% and maintain its £200 billion program of buying UK government bond and sterling non-financial investment-grade corporate bond purchases. "Regarding the impact of asset purchases, gilt yields fell significantly following the previ...

The Fed 'is working hard to support you now,' Powell says in rare morning-television interview
Thursday, 26 March 2020 18:47 WIB

Federal Reserve Chairman Jerome Powell in a rare morning-television appearance Thursday, told Americans the central bank "is working hard to support you now." The $2 trillion stimulus package passed by the Senate last night will provide immediate relief to workers affected by the shutdown of the ec...

The Federal Reserve Just Pledged Asset Purchases With No Limit To Support Markets
Monday, 23 March 2020 20:53 WIB

The Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently in the wake of the coronavirus crisis. Among the initiatives is a commitment to continue its asset purchasing program œin the amounts needed to support smooth market functioning...

Fed and Other Top Central Banks Take Steps to Enhance Dollar-Swap Lines
Friday, 20 March 2020 21:28 WIB

The Federal Reserve on Friday announced it was taking steps with five major central banks to enhance the dollar swap lines designed to make dollars available to foreign institutions. In a statement, the Fed said the central banks would undertake daily 7-day maturity operations rather than weekly on...

RBA Offers to Buy $2.9 billion in First Bond Purchase Operation
Friday, 20 March 2020 08:24 WIB

The Reserve Bank of Australia offered to buy as much as A$5 billion ($2.9 billion) of government bonds on Friday, purchasing debt to lower yields now that its exhausted conventional policy ammunition. Australian bonds held gains after the announcement, with three-year yields down 5 basis points to ...

ANOTHER NEWS
Hong Kong Stocks Finish With Gains (review)
Saturday, 28 March 2020 03:16 WIB Hong Kong stocks rose Friday, closing a healthy week on a positive note as investors welcomed a blockbuster US stimulus plan and pledges by the Federal Reserve to ease liquidity concerns. The Hang Seng Index added 0.56 percent, or 131.94 points,...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.