Australia: RBA Governor Lowe’s testimony to be a focus for the week - BNZ

Friday’s House testimony from RBA Governor Lowe will be a focus for the week as far as Australian markets are concerned, offering as it does the opportunity for Committee MPs to quiz the Governor and his team on the economy and monetary policy, according to analysts at BNZ.

Key Quotes

“The Governor’s Opening Statement will be a potted summary of the refreshed assessment and outlook outlined in last week’s post-Board Media Release and Statement on Monetary Policy (SoMP).”

“While the SoMP offered little in terms of material changes to the Bank’s forecasts for growth, inflation, and unemployment, it’s the risks around those forecasts that will likely draw interest.  Most recently, it’s been the higher AUD that’s drawn the market’s attention and the 59 words that the Media Release devoted to outlining some of the economic growth and inflation impacts. No doubt he’ll be quizzed and pressed further on this and what the policy consequences might be. The state of housing markets across the country, the labour market, international events, geopolitics, and the growth journey of the Chinese economy could be further topics of interest. And how confident is the RBA getting inflation back into the 2-3% band on a sustainable basis?”