Reserve Bank of Australia Deputy Governor Philip Lowe said a stronger currency and higher savings rate have helped contain inflation and allowed lower interest rates even as the mining industry boomed.
Australia’s government needs to stick to its goal of bringing the budget into surplus over the next three years or risk increasing pressure on inflation, central bank Assistant Governor Philip Lowe said today.
Australian businesses need to boost efficiency to maintain growth in living standards and could use engineers freed up from mining construction to build more infrastructure, central bank Deputy Governor Philip Lowe said.
Australia’s central bank is relying on slower wage growth and better productivity to contain inflation pressures as the damping effects of a four-decade high currency begin to wane, Deputy Governor Philip Lowe said.
Global commodity prices are likely to remain elevated for an extended period and tighter monetary policy in regions including Asia may be needed to contain inflation, Reserve Bank of Australia official Philip Lowe said.
Australian mortgage rates have widened relative to the central bank’s benchmark borrowing cost because of more expensive funding and greater competition for deposits, Reserve Bank Deputy Governor Philip Lowe said today.