Lowe said in a speech in Perth that the Bank of Australia is also paying close attention to the sharp rise in US inflation. This may force the Federal Reserve Board (/FED) to accelerate the pace of tightening policy.
Lowe spoke at the dinner of the Bank of Australia's policy committee. The Bank of Australia decided earlier at the September policy meeting to maintain interest rates at a record low of 1.50%.
He stressed that when the central bank waited for wage growth and inflation to pick up, it was necessary to maintain policy easing. Australia's inflation rate has been lower than the central bank's 2-3% target for more than two years. Salary growth is also at the slowest pace, despite the strong performance of the job market.
"Many business people I've talked to admit that if it's not from the individual point of view that they run the business, but from the macro point of view, then the acceleration in overall pay will be positive." "Our expectation is that wages will rise from current levels, but the increase is expected to be only gradual," Lowe said.
Lowe has been patient with policy decisions since he took the helm of the Bank of Australia in September 2016. The central bank last year cut interest rates in August 2016, after which interest rates remain unchanged.

<>The Bank of Australia's president, Lowe, downplayed the risks of the property ma

 

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