RBA’s Lowe – its possible there will be more rate hikes still to come

Reserve Bank of Australia Governor Lowe on the economy and policy:

  • Possible some further tightening will be required to return inflation
    to target
  • Remains to be
    determined whether monetary policy has more work to do
  • Complex picture on
    inflation, significant uncertainties regarding outlook
  • At the August
    meeting, the board will have updated economic forecasts and new data
  • There has been a “significant and rapid” tightening of monetary policy
  • Very conscious
    monetary policy operates with lag, full effects yet to be felt
  • Economic growth to
    be subdued over next couple of years, will take time for inflation to
    return to target
  • Determined to return
    inflation to target within reasonable timeframe

On the Review of the Bank and changes that’ll be implemented:

  • RBA board to make
    changes based on independent review
  • From 2024, the board
    will meet eight times a year, rather than 11 times
  • Board meetings to
    start on Monday, conclude at usual time on Tuesday
  • Post-meeting
    statement announcing the decision will be issued by board, rather
    than governor
  • RBA governor will
    hold a media conference after each board meeting to explain decision
  • Quarterly statement
    on monetary policy will be released at same time as policy decision
  • Current board
    structure to remain as is
  • RBA board to decide
    on some review recommendations at a later date

If you do want to listen live this is the link here.

This article was written by Eamonn Sheridan at www.forexlive.com. Source