The upshot of the RBA Governor’s speech to the Press Club
A slowing Australian economy may force the Reserve Bank to lower interest rates, to help deal with any headwinds.
Governor Philip Lowe spoke to the National Press Club on Wednesday, his first major speech of the year.
It’s the first time the RBA Governor has spoken to the Club since Bernie Fraser in 1996.
Mr Lowe said economic growth could weaken this year and next, on the back of falling house prices and stagnant consumer spending.
He says while interest rates had been expected to rise, that’s no longer a certainty.
The Reserve will factor in house prices and jobs and wages growth when deciding interest rate moves.
St George’s chief economist Besa Deda tells Ross Greenwood she still thinks the RBA is optimistic about our economic future.
“But (Mr Lowe) did seem more uncertain about the outlook,” Ms Deda said.
“And rightly so, because the downside risks in the global economy have grown, and the downturn in the housing market in Australia has deepened.”
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Photo: Philip Lowe addresses the Press Club (Dan Himbrechts / AAP)