Australian Prime Minister Scott Morrison has confirmed he has spoken with Reserve Bank of Australia Governor Lowe
and Treasurer Frydenberg with Deputy Governor Debelle.
When the PM and Treasurer 'speak' with the Gov and Dep Gov it makes you wonder what sort of pressures were applied. If you've been following along you'll be aware of some expectations in the market of increased RBA easing (via an expansion of QE, not a taper) ahead.
Morrison in the Australian Financial Review:
- "I spoke to the governor of the Reserve Bank only this week and the deputy governor with the Treasurer, and they share an outlook, as we do, and that is while these impacts of the lockdowns will be here in this quarter, in the quarter that follows, should we continue to be on the path we're on, in increasing our resilience, then we can expect that to turnaround in the December quarter."
The background to this is the sweeping lockdowns reimposed in Australia covering half the population hitting the economy (not to mention people's health), amidst a super-slow (slowest in the OECD) vaccine rollout hampered by conflicting advice seeding hesitancy amongst the population and a snail's pace supply of the preferred vaccine, Pfizer.
Link to the AFR is here if you want more (may be gated).
Gov and Dep Gov
