Reserve Bank of Australia Governor Lowe spoke earlier:
RBA Gov Lowe: Further tightening of monetary policy may be needed
Follow up Q&A now. Lowe:
Lowe adds:
- Australians shoulddn’t fall into a state of despair. Says there is a path back to better times and increasing real wages.
Lowe shouldn’t set himself up as a motivational speaker. If he put the scare into people instead of these attempts at cheering us all up, the RBA efforts to subdue demand in the economy via rate rises, and hence reduce inflationary price pressure, would be more effective.
The RBA cash rate is still well under the CPI rate: