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RBA's Lowe: next move in interest rates would be up, "not down"

AUD/USD goes bid on the comments from  Philip Lowe, who is the Reserve Bank of Australia's Governor. He is speaking at the Australian Financial Review Business Summit in Sydney around the topic of "The Changing Nature of Investment". There have been some comments on the economy or policy and the key takeaway is the next move from the RBA would be up, "not down". 

Key comments as follows:

 

  • Sees no near-term need for change in policy adjustment.
  • Next rate move likely up, not down.
  • We expect stronger growth in 2018 than in 2017, further reduction in unemployment.
  • Expects inflation to increase a little from its current low rate.
  • Says likely next move in interest rates will be up, not down.
  • Progress on unemployment and inflation likely to be only gradual.
  • Says board does not see a strong case for a near-term adjustment of monetary policy.
  • Says picture on non-mining business investment better than for some time.
  • Says investment shifting to information technology, service industries.
  • Lowe emphasises the importance of education, accumulation of human capital in investment.
  • Lowe says tax discussion important but not the only factor in investment.

Key notes:

 

RBA: first rate hike to come in Q1 2019? - Nomura

About Lowe:

Philip Lowe replaced Glenn Stevens as governor of Australia’s central bank. Lowe was the Deputy Governor of the Reserve Bank of Australia, a position he held since February 2012.

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