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21 Apr 2020
RBA’s Lowe: Current rates likely to remain for a few years
Additional headlines are flowing in from the Reserve Bank of Australia’s (RBA) Governor Phillip Lowe, as he says that current rates likely to remain for a few years.
Do not see deflation over the medium term.
Going to need low interest rates for a very long period of time.
Wages to slow, will be a couple of years to return to current growth.
Encouraged that on way back from lockdown.
No objections to buying longer-dated bonds, but focused on shorter-end for now.
Banks will certainly cut back dividends, which is appropriate.
Do not think bank dividends need to be banned.
A$ is working to help stabilize the economy.