Reserve Bank of Australia Deputy Governor Lowe:
- Further exchange rate fall would help economic transition
- Says recent rate cut to suppport consumer demand, home construction
- Not in Australia’s interests to engineer debt-fuelled consumption boom
- Says “fairly fine line” to walk on rates, trying to strike prudent balance
- Missing factor domestically is still non-mining investment
- Sustained lift in non-mining invesment seems “some way off”
- Business setting too high a hurdle on new investment for low rate world
- Average return on savings globally to stay low for protracted periodmore to come
See full text: Managing Two Transitions
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