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MNI BRIEF: Quantity Of Money An Influence On Price RBA's Lowe

MNI (Sydney)
SYDNEY (MNI)

The quantity of money is now a key factor in influencing the price of money and that is why the Reserve Bank of Australia has introduced a AUD100 billion program of quantitative easing, said RBA Governor Philip Lowe. In a speech to the Council for the Economic Development of Australia Monday, Lowe said "quantities and prices are obviously connected" and QE would impact on long term risk free interest rates and boost liquidity.

He said that although the RBA was focused on addressing employment, it was not "backing away" from the inflation target of between 2% and 3%. The RBA remained committed to this target, Lowe said, and the best way to address this was through reducing the "spare capacity" which currently exists in the economy.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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