RBA’s Lowe: Possible could lower cash rate to 10 bps

Further comments are crossing the wires from the Reserve Bank of Australia (RBA) Governor Philip Lowe, as he continues to speak at the Anika Foundation Luncheon on Tuesday.

Welcomes extension of govt job plans.

Would be big mistake to withdraw govt support too early.

Can be assured rba will continue its support for economy.

Inflation to stay low for quite some time.

Possible could lower cash rate to 10 bps.

Judgement is lower rates would have little benefit.

Could expand buying bonds, but again see little need.

Cannot make case A$ is misaligned right now.

Would like to see a lower A$.

Value of A$ set in market, not going to intervene to lower it.

Coronavirus lockdown in Melbourne is very concerning Do not need to experiment with monetary financing of govt.

Will do whatever required to keep 3-yr yield near 25 bps.