Free Trial

MNI BRIEF: RBA Comfortable With Inflation Over 3%, Says Lowe

MNI (Sydney)

The Reserve Bank of Australia is comfortable for inflation to run at over 3% for a period, even though this was above its 2% to 3% target range, according to central bank Governor Philip Lowe.

Appearing before a Parliamentary Standing Committee on Economics on Friday, Lowe said that once inflation moved into the lower target range the RBA would "not say job done."

He said the central bank would be comfortable for inflation to be "higher than 2.5% or even 3% for a while."

The RBA has said that it would not increase interest rates form the current record low 0.10% until inflation was "sustainably" in the target range, and that it does not see this happening until 2024.

Trimmed mean inflation, the measure closely watched by the RBA, is running at 1.6%. Lowe said the RBA forecast was now for inflation to be 1.75% in 2022 and 2.25% in 2023.

MNI Sydney Bureau | +61-405-322-399 |
MNI Sydney Bureau | +61-405-322-399 |

To read the full story



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.