RBA’s Lowe: ­­Monetary policy cannot deliver medium-term growth

The Reserve Bank of Australia (RBA) Governor Philip Lowe, in his speech at the day 3 of the Jackson Hole Symposium, called on the governments to do to stimulate growth.

Additional Comments:

We are experiencing a period of major political shocks.

Political shocks are turning into economic shocks.

Central banks have a limited and partly exhausted arsenal of tools to fight back.

Monetary policy cannot deliver medium-term growth.

We risk just pushing up asset prices.

Called for investment in infrastructure and structural reforms.

Lowe’s comments had little cues on the Australian monetary policy outlook and therefore, unlikely to have any impact on the local currency, the Aussie dollar, which is likely to see a big opening bearish gap amid US-China trade escalation.