Philip Lowe, governor of the Australian central bank, told a parliamentary committee that the official cash rate is likely to remain at a record low of 0.25% for several years.
“the policy committee has made it clear that cash interest rates will not be raised unless progress is made towards full employment and there is confidence that inflation will remain within the target range of 2-3%. These conditions are unlikely to be met for at least three years. ”
Philip Lowe said, “cash interest rates are likely to remain at this level in the next few years, and the three-year yield target set at 25 basis points further strengthens this message.”
on the economic outlook, Lowe said Australia should be prepared for an “unbalanced, tortuous” recovery that may last longer than originally expected.