Need to keep monetary support until people get jobs, higher wages

The Reserve Bank of Australia (RBA) needs to keep monetary support until people get jobs and wages edge higher, Governor Philip Lowe said in a Q&A session following his speech titled “The Year Ahead”, at the National Press Club of Australia Conference, Canberra.

Further comments

Fiscal response has been incredibly important in recovery.

Borrowing more exactly the right thing to do.

Hopes government will respond with more fiscal stimulus if needed.

Global central banks are not in a cold war on fx.

Not particularly worried about asset prices rising too strongly at the moment.

Laws of supply and demand in labour market still work.

Not especially worried about asset prices rising too strongly at moment.

Regulators prepared to step in on home borrowing if needed, but not needed now.

Not considering extending three-year bond yield target out to 10-year.

 

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