Central Banks
Australian Job Market Very Tight, Inflation Still Hot, Lowe Says
- Governor says 4Q inflation surpised with strength of demand
- Says recent job weakness likely seasonal, labor market tight
WATCH: Reserve Bank of Australia Has Policy Response Flexibility, Governor Says
Source: Bloomberg
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Australia’s labor market is “still very tight” and price pressures remain surprisingly strong, Reserve Bank Governor Philip Lowe said, making the case for further interest-rate increases.
“Given there is a significant demand element to inflation, we need to respond to that with further monetary policy,” Lowe told a parliamentary panel Friday in his second session of testimony this week. “We need to make that clear to the community that we were not done yet.”