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Lowe Reaffirms Willingness To Be Patient, Cognisant Of Risks Of Doing So

RBA Governor Lowe's opening remarks in front of the House of Representatives Standing Committee on Economics reveals nothing in the way of meaningful surprises. Lowe reaffirms the RBA's willingness to be patient, in addition to tipping his hat to the risks involved in doing so.
  • To conclude, Lowe notes: "I recognise that there is a risk to waiting but there is also a risk to moving too early. Over the period ahead we have the opportunity to secure a lower rate of unemployment than was thought possible just a short while ago. Moving too early could put this at risk. At the same time, we are committed to maintaining low and stable inflation and will do what is necessary to achieve this important goal. The stronger the economy and the more upward pressure on prices and wages, the stronger will be the case for an increase in interest rates."
  • "I would like to end with a brief reflection about the past couple of years."
  • "Throughout the pandemic, the RBA has had to make decisions in a highly uncertain environment in which there have been many moving parts. Over the two years, we have sought to provide the support the Australian economy needed and to play our role in building the bridge to the other side. Our actions have also been motivated by providing the country with insurance against the possibility of large downside risks that could have damaged the economy and hurt the welfare of the Australian people. Throughout this period, some things have worked out as expected but there have been plenty of surprises along the way. The RBA is committed to fully examining this experience in an open and transparent matter and to drawing lessons for the future."
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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