Pursuits
Reserve Bank of Australia Not ‘Inflation Nutters’, Lowe Says in First Speech
- Flexible inflation target remains right policy for Australia
- Governor Lowe says lower Aussie dollar ‘would be helpful’
Australia's Lowe: RBA Not 'Inflation Nutters'
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Reserve Bank of Australia Governor Philip Lowe said it was unlikely the central bank would resort to unconventional measures and that a flexible inflation target that took account of financial imbalances was the most appropriate way to decide policy.
Lowe the Australian economy was “not at all” running out of options and there was a strong case for infrastructure spending to support growth, in reply to questions on the limits of monetary policy from a parliamentary committee in Sydney Thursday. The central bank, which has cut the benchmark to a record low 1.5 percent, has previously indicated that rates become less effective at about 1 percent.