Economics
RBA’s Lowe Sees Victoria Outbreak Offsetting Recovery Elsewhere
- Governor would like lower currency to help increase employment
- Worries negative rates would hamper credit delivery to economy
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Australia’s central bank chief said economic growth is unlikely to lift until the final three months of this year, with Victoria’s renewed lockdown to contain its Covid-19 outbreak “broadly offsetting” the recovery that’s been unfolding elsewhere.
“People’s attitudes to spending are changing because of the pandemic,” Governor Philip Lowe told a parliamentary panel Friday via video conference. “It is probable that households and businesses will remain more cautious and that this will affect consumption and investment. How long this change might last is hard to tell.”