Reserve Bank governor Philip Lowe says there will not be a return to strong economic growth in the near term, despite the bank's preparedness to keep cutting interest rates.
Reserve Bank governor Philip Lowe has given the strongest indication yet that another cut in the official interest rates will be delivered next week in a concerted effort to drive unemployment down.
Dr Lowe said the interest rate cuts in June and July this year were aimed at lowering unemployment to generate wages growth and push inflation back to the RBA's desired 2-3 per cent band.unemployment ticked up to 5.3 per cent in August"The decisions to ease monetary policy in June and July were taken to help make more assured progress towards full employment and the inflation target. Further monetary easing may well be required," Dr Lowe said.
"The board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, make further progress towards full employment, and achieve the inflation target over time," Dr Lowe added.
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