Reserve Bank of Australia Governor Lowe earlier:
Q&A now, Lowe adding more useful info:
- we will have an open mind at policy meetings
- if the data suggest a pause prior to the next meeting, we will do that
Lowe has pointed out that the data on jobs, retail spending, business surveys, along with PCI, are all important considerations. If those data suggest a pause is needed then the Board will pause its rate hikes. If not, then it’ll be another hike. Lowe said more aggressive rate hikes were considered and that this would bring CPI back closer to target prior to 2025 the bank currently forecasts, but this would come at a big cost in unemployment.
The Bank next meet on April 4. Ahead of that meeting is data for
- February jobs report due March 16
- February retail trade March 28
- February monthly CPI due March 29
Lowe is also cognizant of fixed rate mortgage payments rolling over in the coming months. Total required mortgage payments are expected to reach around 9.5% of household disposable income. This would be close to a record high and would trim demand in the economy. And the rate of inflation , or so the reasoning goes.