Today RBA governor Philip Lowe gave a keynote speech titled Inflation Targeting and Economic Welfare
Here are the key points:
- RBA governor Philip Lowe says the board is prepared to cut interest rates further if the economy does not grow fast enough
- “It is highly unlikely that we will be contemplating higher interest rates until we are confident that inflation will return to around the midpoint of the target range,”
- Even if it does not cut rates, Mr Lowe said “it is reasonable to expect an extended period of low interest rates”
- The RBA believes that greater participation in the labour market is a key factor keeping wages growth and inflation low
- “In my view the evidence does not support the idea that a change to our inflation target would deliver better outcomes than achieved by our current flexible inflation target”.
- “We are living in a world of low and stable inflation and low unemployment. It is useful to remind ourselves of this sometimes.”
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02-8249-1984 Markus
02-8249-1985 Ben
02-8249-1986 Katherine
02-8249-1987 Lex
02-8249-1988 Curt
Bond Details
| 2022 Fixed | 2022 Floating | |
| ISIN | AU3CB0254480 | AU3FN0043337 |
| Coupon Type | Fixed | Floating |
| Coupon Rate | 6.00% | BBSW+3.75% |
| Coupon Payment | Semi-Annually | Quarterly |
| Maturity Date | 9th June 2022 | 9th June 2022 |
| Type / Rank | Senior Unsecured | Senior Unsecured |