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RBA Ready to Ease Again, But Lowe Sees ‘Gentle Turn’ in Economy

  • Policy statement pushes back timing for faster GDP, inflation
  • Lowe acknowledges QE possible, sketches out possible measures
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Reserve Bank of Australia Governor Philip Lowe faces a grilling in Parliament over RBA policy.(Source: Bloomberg)
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Reserve Bank Governor Philip Lowe said he’s still prepared to reduce Australia’s record-low interest rates further if needed, though signaled the economy could be through the worst of its slowdown.

The central bank’s own estimates, released as Lowe spoke, pushed back expectations for faster economic growth and inflation and a lower unemployment rate. Importantly, these were based on current market pricing for two more RBA cuts that would bring the cash rate to 0.5%. Nonetheless, the RBA chief struck a note of quiet optimism.