RBA’s Lowe: Central bank’s decision to downshift reflects monetary policy lags

Reserve Bank of Australia (RBA) Governor Philip Lowe is participating in a panel discussion titled "Growth and Inflation Dynamics" at the Bank of Thailand 80th Anniversary Conference, in Bangkok.

Key quotes

Australia's inflation expectations remain well-anchored.

Domestic spending has been resilient to higher interest rates thus far.

The RBA’s decision to downshift reflects monetary policy lags.

Policy lags are very likely to be longer this cycle.

We are aiming to slow inflation without negatively impacting the economy too much.

Central banks will face much greater variation in inflation.

Must show the public that CPI will return to target.