RBA’s Lowe: Uncertain if demand will be strong enough, if not will need further stimulus

Dhwani Mehta FXStreet

More comments flowing in from the Reserve Bank of Australia (RBA) Governor Lowe, as he responds to the Q&A session following his earlier speech.

Need stronger demand growth.

Wants to see more pressure on the economy's supply capacity.

Uncertain if demand will be strong enough if not will need further stimulus.

Not shifting toward forward guidance.

Being as transparent as possible on policy.

Does not put too much weight on market-based measure of inflation expectations.

Stronger pace of wage growth would be positive for inflation expectations.

Further fiscal stimulus through infrastructure is an option.

Reasonably confident treasury will agree on keeping inflation target.

Might be some drafting changes in wording of monetary policy agreement.

The AUD/USD pair keeps range near 2-week lows of 0.6965, as markets weigh in the latest remarks by the RBA Head Lowe.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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