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

Australia Holds Rate as RBA Waits for Past Cuts to Flow Through
Tuesday, 3 December 2019 10:56 WIB

Australia™s central bank kept interest rates unchanged as it waits for three cuts since June to flow through to areas of the economy beyond the property market. Reserve Bank Governor Philip Lowe and his board kept the cash rate at 0.75% Tuesday, in line with expectations of ec...

ECB's Lagarde: Euro area growth remains weak due to global factors
Monday, 2 December 2019 21:20 WIB

The European Central Bank (ECB) President Christine Lagarde, testifying before the European Parliament this Monday, said that the region's economic growth remains weak and this weakness has been mainly due to global factors. The world economic outlook remains sluggish and uncertain. Consumption ha...

BOJ's Kuroda: Mix of fiscal and monetary policy is standard way of dealing with economy
Thursday, 28 November 2019 13:01 WIB

Spending for disaster relief, concern over impact of global slowdown in Japan's economy should be better addressed by govt with fiscal, structural policies. Fiscal space for japanese government is somewhat limited so wise spending is required. Policy coordination between govt, BOJ is probably nece...

ECB's Lagarde: We Face a Global Environment That is Marked by Uncertainty
Friday, 22 November 2019 15:58 WIB

While delivering a key note address at the European Banking Congress, in Frankfurt, on Friday, the new European Central Bank (ECB) President Lagarde said: œWe face a global environment that is marked by uncertainty. Two main challenges in the global economy today, the first relates to the chan...

Fed Minutes Show Worries About Economy Had Eased a Bit
Thursday, 21 November 2019 02:24 WIB

Federal Reserve officials were more upbeat about the economy in late October than they had been only six weeks earlier, according to minutes of their policy discussion released Wednesday. Officials œgenerally viewed the economic outlook as positive, the minutes said. œUncertainties associat...

ANOTHER NEWS
Hong Kong stocks finish week on positive note (Review)
Saturday, 7 December 2019 04:32 WIB Hong Kong closed more than one percent higher Friday, boosted by renewed hopes that China and the United States will eventually reach a partial trade deal. The Hang Seng index added 1.07 percent, or 281.33 points, to 26,498.37. The benchmark...

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.