RBA Governor Philip Lowe sees 3pct GDP by 2019

Reserve Bank of Australia Governor Philip Lowe is speaking Australia and Canada - Shared Experiences, at the Australia-Canada Economic Leadership Forum, Sydney.

From the speech, Lowe has said that policy balancing risks of low inflation vs high household debt while not seeing much risk of inflation expectations becoming unanchored.  

Lowe also said that, to date, he is satisfied with the labour market that is heading in right direction. He also repeated the outlook for a 3 pct GDP growth rate over next two years with a gradual rise in inflation while the downturn in mining investment is 90 pct done and that non-mining investment still subdued. The key takeaway here is that he sees that their policy is about balancing risks of low inflation vs high household debt while at the same time not seeing much risk of inflation expectations becoming unanchored. A key concern is if encouraging more borrowing it would lead to a consumer downturn.