The local highlight will be a speech from RBA Governor Phillip Lowe at the Australia-China Relations Institute. While the focus will no doubt be on Australia’s export dependence on China and the benefits of trade to both countries, Lowe is also likely to discuss some of the recent economic news which shows entrenched low inflation and a softening outlook for the world economy.
In the recent Statement of Monetary Policy, the RBA was forecasting a moderation in the pace of economic growth in Australia’s trading partners out to 2019. The slowdown was not acute, but implied the impetus to the Australian economy from growth in export volumes and prices would be reasonably benign.
Dr Lowe is also likely to be questioned about the recent run of local economic news, most of which points to on-going softness in the pace of economic growth and growing risks from the downturn in house prices and credit growth.
Source: RBA
