VOT Research Desk
At the Bank of Thailand’s 80th Anniversary Conference in Bangkok, Governor of the Reserve Bank of Australia (RBA) Philip Lowe is taking part in a panel discussion on “Growth and Inflation Dynamics.
Australia’s predictions for inflation are still firmly grounded. Up until now, domestic expenditure has remained robust to rising interest rates. Lags in monetary policy are reflected in the RBA’s decision to downshift.
This cycle, policy lags are almost certainly going to be longer. We want to reduce inflation without seriously harming the economy. The variability of inflation will be substantially bigger for central banks.
The public must be shown that the CPI will revert to its target.
In response to RBA Lowe’s remarks, the Australian Dollar is currently finding some renewed demand, as AUD/USD is up 0.04% on the day to 0.6811 at the time of writing.
