VOT Research Desk
The important points from the December RBA monetary policy announcement, as given by Governor Phillip Lowe, are listed below, via Reuters.
Board will take all necessary steps to fulfil its goal of getting inflation back to target. The Board anticipates more increases in interest rates in the coming years. Australia’s inflation rate is too high.
Board closely observing consumer spending, wage and price setting behavior, and the global economy. Future increases will depend on statistics and predictions for inflation and the labor market, as well as their size and timing. Over the coming months, more inflation is anticipated.
The Australian economy is still expanding strongly. Board is not following a predetermined path.
The job market is still very tight. Over the upcoming time frame, household spending is anticipated to slow. How to achieve a soft landing and the necessary drop in inflation because the economy is still small.
The Board’s top priority is to re-establish low inflation and, over time, bring inflation back to the 2-3% range.
