Free Trial

(Z2) Status Quo


Insolvency Risk Rising


Bid On Global Matters

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
MNI (Sydney)

Reserve Bank of Australia Governor Philip Lowe has suggested that the “neutral nominal rate” for official interest rates is at least 2.5%, but says this would move higher if medium term inflation expectations were to increase.

In a speech on Wednesday, Lowe said more interest rate rises were needed from the current level of 1.35% to crimp demand and create “a more sustainable balance between demand and supply,” (See: MNI STATE OF PLAY: Household Spending A Factor For RBA Hikes).

He was confident that inflation would come down next year, and said the RBA was prepared to take time over returning inflation to the 2% to 3% target range. Australia’s first quarter CPI inflation was 5.1% and new data, to be released next week, is expected to show a surge in the second quarter. Lowe has said he believes inflation will peak at around 7% later this year before falling back.

Lowe also defended the RBA’s inflation target policy, which is now under review by an independent panel appointed today.

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

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.