RBA Governor Philip Lowe’s first speech as Governor has reinforced themes around monetary policy we have been highlighting. In our view, the speech adds a dovish increment to the tilt for monetary policy in Australia.
We think that the framework outlined by Lowe for how the RBA Board is considering policy, and the Minutes of the October RBA Board meeting, point to further easing. Markets may be mispricing the risk of additional rate cuts.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
