Further comments are hitting the wires from the Reserve Bank of Australia (RBA) Governor Lowe, as he says that 0.25% is the effective lower bound for rates.
QE could include purchase of state government bonds.
Expects employment growth to be slow but still be reasonable.
Not particularly worried by rising house prices at the moment.
Would be worried if borrowing picked up markedly.
The likelihood of recession is low.
Would consider buying bonds in recession, possibility of fiscal action.
Buying govt bonds more effective than buying RMBS.
Find allegations against Westpac appaling.
Going to take long time for wages to translate to inflation.
Important thing is moving in right direction on inflation.
Long way from QE scenario happening.
Lot of positives in economy.
2-3% inflation target is still right one.
The AUD/USD pair consolidates the spike to 0.6795 highs, with the latest Lowe's comments doing little to move the Aussie dollar.
About RBA’s Lowe
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