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Lowe On Forward Guidance/Rate Hikes

RBA

Lowe, when questioned on forward guidance, notes that the Bank can set out its forecast and reaction function. Points to a better-than-expected economy driving the evolution of monetary policy over the last year.

  • Notes that it is quite significant that the economy has made faster than expected progress on inflation & unemployment.
  • Lowe notes that it makes sense that such a dynamic results in faster interest rate rises (when compared to previous expectations).
  • Lowe notes that the Federal election is not a relevant variable for the Bank’s policy.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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