RBA’s Lowe: Hopeful we can navigate the narrow path to a soft landing

Responding to the Q&A at the Anika Foundation Fundraiser, the Reserve Bank of Australia (RBA) Governor Philip Lowe said that he is hopeful that they can navigate the narrow path to a soft landing.

Additional comments

Demand has to grow mnore slowly to bring back in line with supply.

There is significant demand element to higher inflation, not just supply.

Very concious there are lags in monetary policy.

Very possible wage growth does not pick up much further.

more to come ...

Market reaction

In an immediate reaction to the above comments, AUD/USD is testing daily lows near 0.6715, losing 0.72% on the day.