RBA's Lowe speaks at the House of Representatives Standing Committee on Economics

Traders are getting set for the Reserve Bank of Australia today that will publish its August Statement on Monetary Policy.

The focus will be on the Bank’s updated forecasts in light of the recent lockdowns where otherwise, the RBA surprised markets with a hawkish hold and stood pat tapering timings despite the risks of the virus. 

Meanwhile, traders can tune into Governor Lowe's appearance before the House of Representatives Standing Committee on Economics here.

Key comments

Expecting return to string growth next year.

The economy has bounced back faster. 

• RESERVE BANK OF AUSTRALIA GOV LOWE SAYS ECONOMY HAS BOUNCED QUICKER THAN FORECAST
• 05-Aug-2021 17:33:29 - RBA GOV LOWE: THE LABOUR MARKET RECOVERY HAS BEEN MOST REMARKABLE
• 05-Aug-2021 17:33:50 - RBA GOV LOWE: RECOVERY HAS BEEN INTERRUPTED BY OUTBREAKS OF THE HIGHLY INFECTIOUS DELTA STRAIN OF THE CORONAVIRUS, ESPECIALLY IN NEW SOUTH WALES
• 05-Aug-2021 17:33:52 - RBA GOV LOWE SAYS AT THE BOARD'S MEETING EARLIER THIS WEEK WE CONSIDERED THE CASE FOR DELAYING THIS TAPERING TO $4 BILLION A WEEK
• 05-Aug-2021 17:34:00 - RBA GOV LOWE: GDP IS LIKELY TO DECLINE IN THE SEPTEMBER QUARTER
• 05-Aug-2021 17:34:06 - RBA GOV LOWE SAYS WE ARE EXPECTING A RETURN TO STRONG GROWTH NEXT YEAR.
• 05-Aug-2021 17:34:18 - RBA GOV LOWE: HOW LARGE THE DECLINE WILL BE DEPENDS ON THE DURATION OF THE LOCKDOWNS AND WHETHER THERE ARE FURTHER MATERIAL OUTBREAKS ELSEWHERE IN AUSTRALIA IN THE WEEKS AHEAD
• 05-Aug-2021 17:34:19 - RBA GOV LOWE SAYS ANY ADDITIONAL BOND PURCHASES WOULD HAVE THEIR MAXIMUM EFFECT AT THAT TIME AND ONLY A VERY SMALL EFFECT RIGHT NOW WHEN THE EXTRA SUPPORT IS NEEDED MOST.
• 05-Aug-2021 17:34:29 - RBA GOV LOWE SAYS BOARD ALSO RECOGNISED THAT FISCAL POLICY IS THE MORE APPROPRIATE INSTRUMENT FOR PROVIDING SUPPORT I
• 05-Aug-2021 17:34:33 - RBA GOV LOWE: HOUSEHOLD CONSUMPTION IN AREAS THAT ARE LOCKED DOWN IS TYPICALLY AROUND 15 PER CENT LOWER THAN IT WOULD BE OTHERWISE
• 05-Aug-2021 17:34:44 - RBA GOV LOWE: SOME INCREASE IN THE UNEMPLOYMENT RATE IS ALSO EXPECTED OVER THE MONTHS AHEAD
• 05-Aug-2021 17:34:47 - RBA GOV LOWE SAYS WE WILL, HOWEVER, KEEP THE SITUATION UNDER REVIEW AND ARE PREPARED TO ACT IN RESPONSE TO FURTHER BAD NEWS ON THE HEALTH FRONT
• 05-Aug-2021 17:34:58 - RBA GOV LOWE SAYS THE BOARD WILL NOT BE INCREASING THE CASH RATE UNTIL INFLATION IS SUSTAINABLY IN THE 2 TO 3 PER CENT RANGE
• 05-Aug-2021 17:35:00 - RBA GOV LOWE: SIGNIFICANT PARTS OF THE AUSTRALIAN ECONOMY ARE STILL ON THE POSITIVE TRAJECTORY THAT WAS IN PLACE BEFORE THE RECENT OUTBREAKS
• 05-Aug-2021 17:35:09 - RBA GOV LOWE SAYS UNDER THE CENTRAL SCENARIO, THE CONDITION WE HAVE SET FOR AN INCREASE IN THE CASH RATE IS NOT EXPECTED TO BE MET BEFORE 2024
• 05-Aug-2021 17:35:38 - RBA GOV LOWE: OUR CENTRAL SCENARIO IS THAT THE ECONOMY WILL RETURN TO STRONG GROWTH IN 2022
• 05-Aug-2021 17:36:04 - RBA GOV LOWE: CENTRAL SCENARIO SEES GDP INCREASING BY A LITTLE OVER 4 PER CENT IN 2022, TO BE FOLLOWED BY GROWTH OF AROUND 2½ PER CENT IN 2023
• 05-Aug-2021 17:36:21 - RBA GOV LOWE: ONE SOURCE OF UNCERTAINTY IS THE POSSIBILITY OF VACCINE-RESISTANT VIRUS STRAINS EMERGING OVER TIME
• 05-Aug-2021 17:36:45 - RBA GOV LOWE: ANOTHER SOURCE OF UNCERTAINTY IS THAT IT IS STILL UNCLEAR WHAT TYPE OF ADJUSTMENTS OUR SOCIETY WILL HAVE TO MAKE TO LIVE WITH COVID ON AN ONGOING BASIS
• 05-Aug-2021 17:37:07 - RBA GOV LOWE: IT IS POSSIBLE THE AUSTRALIAN ECONOMY WILL AGAIN EXPERIENCE A RUN OF POSITIVE SURPRISES, AS IT DID EARLIER THIS YEAR
• 05-Aug-2021 17:37:21 - RBA GOV LOWE: IF WE ARE SUCCESSFUL IN CONTAINING THE VIRUS OVER THE MONTHS AHEAD, IT IS POSSIBLE THERE WILL BE STRONGER UPSWINGS IN BOTH INVESTMENT AND CONSUMPTION
• 05-Aug-2021 17:37:39 - RBA GOV LOWE: IT WILL TAKE SOME TIME FOR INFLATION TO BE SUSTAINABLY IN THE 2 TO 3 PER CENT TARGET RANGE
• 05-Aug-2021 17:38:37 - RBA GOV LOWE: IN OUR CENTRAL SCENARIO, BOTH WAGES GROWTH AND UNDERLYING INFLATION PICK UP, BUT DO SO ONLY GRADUALLY
• 05-Aug-2021 17:38:50 - RBA GOV LOWE: THE CENTRAL FORECAST IS FOR UNDERLYING INFLATION TO BE 1¾ PER CENT OVER 2022 AND THEN 2¼ PER CENT OVER 2023
• 05-Aug-2021 17:39:07 - RBA GOV LOWE: GROWTH IN THE WAGE PRICE INDEX IS EXPECTED TO PICK UP GRADUALLY TO 2¾ PER CENT OVER 2023
• 05-Aug-2021 17:40:25 - RBA GOV LOWE: EIGHTEEN MONTHS ON, THERE ARE NOW PLAUSIBLE SCENARIOS IN WHICH THE CASH RATE IS INCREASED OVER A 3-YEAR HORIZON, WHICH NOW RUNS UNTIL LATE 2024
• 05-Aug-2021 17:40:35 - RBA GOV LOWE: GIVEN THIS SHIFT, THE BOARD DECIDED THAT IT WAS NOT APPROPRIATE TO EXTEND THE YIELD TARGET TO THE END OF 2024

More to come...