RBA’s Lowe says monetary policy can push up asset prices but can’t deliver medium-term growth

News

Lowe at Jackson Hole

RBA Governor Philip Lowe used his speech at Jackson Hole to prod governments to do more for growth.

“We are experiencing a period of major political shocks,” he said. “Political shocks are turning into economic shocks.”

He warned that central banks have a limited and partly exhausted arsenal of tools to fight back.

“Monetary policy cannot deliver medium-term growth,” Lowe said. ” We risk just pushing up asset prices.”

Instead, he called for investment in infrastructure and structural reforms.

This is the same sort of thing the ECB and BOJ have been saying for years but with everyone headed to the zero-bound, expect to hear much more of it in the years ahead.

ForexLive

Products You May Like

Articles You May Like

Scalping and Intraday Trading Strategy High Win Rate Forex Trading Philippines
INSANE Forex Scalping Strategy That WORKS 100% [EASY] [PROOF]
Forex Trading System that is Easy to Learn | NZDJPY Trade on the 4hr Time-Frame
Beginner to full time Forex trader and mentor within 9 months!
Avoid These Forex Mistakes – Forex Trading For Beginners

Leave a Reply

Your email address will not be published. Required fields are marked *