From the Q&A.
Post on his speech is here:
The one-sentence summary of his speech is that Lowe sees further rate rises as still required, just at a slower than pace than we’ve had.
- Demand has to grow more slowly to bring back in line with supply
- There is significant demand element to higher inflation , not just supply
- very conscious that there are lags in monetary policy
- its very possible that wage growth does not pick up much further
- quantiitave tightening is not on our agenda
- neutral cash rate is at least 2.5%
- we are closer now to estimates of neutral
Speaking of preset. (I’ve posted this before. Sue me)