Free Trial

Lowe Stresses Need For Productivity Growth

RBA

Early comments from RBA Governor Lowe, appearing before the Senate Economics Committee, have focused on the importance of boosting productivity growth. Wages growth of 4% without productivity growth will be problematic. This leaves the central bank focused on unit labor costs, although there are other variables the CB is focused on, including services inflation, in terms of whether to hike rates again. Overall, rates are restrictive, and Lowe emphasized that the central bank remains in data dependence mode in terms of rate decisions.

  • Any slippage in the inflation rate returning to target by 2025 would prompt further RBA action.
  • The reaction in AUD (last 0.6520/25) and AU bonds/rates has been muted since Lowe started speaking.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.