Lowe: “more work to do”; RBA review begins – ANZ

Analysts at Australia and New Zealand (ANZ) Banking Group provide reactions to the speech delivered by Reserve Bank of Australia (RBA) Governor Philip Lowe early Wednesday.

Key quotes

“RBA governor Lowe’s speech this morning and following Q&A made it clear the RBA has “more work to do,” but his view of where the neutral cash rate might lie still includes 2.5%, which is lower than the range alluded to in deputy governor Bullock’s speech yesterday, so can be seen in a somewhat dovish light.”

“On the other hand, Lowe is also open to the possibility that, “maybe we’ve gone past the point of full employment,” in which case, the RBA will need to take policy into clearly restrictive territory to bring inflation back to target.”