RBA’s Lowe Pushes Back Against Bets on Early Rate Rises
- Reiterates conditions for rate rise not expected before 2024
- Central bank expects 3Q GDP contraction of 2%, possibly larger
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Australia central bank chief Philip Lowe pushed back against investor bets on early interest-rate increases, arguing it will take time to drive faster wages growth and reiterating he doesn’t expect liftoff before 2024.
“I find it difficult to understand why rate rises are being priced in next year or early 2023,” Lowe said in a speech to the Anika Foundation on Tuesday. “While policy rates might be increased in other countries over this time frame, our wage and inflation experience is quite different.”