Reserve Bank of Australia Governor Philip Lowe the conditions for an increase in the key interest rate will not be met next year.
At the CPA Australia Riverina Forum, Lowe said the monetary board is prepared to be patient.
Further, he laid out the options for the central bank’s bond purchase programme. The governor said the first option is to reduce the pace of bond purchases from mid-February with an expectation of a likely end point in May.
If better-than-expected progress towards the Board’s goals was made, then the case to cease bond purchases in February would be stronger, he noted.
Alternatively, if progress is slower than expected, or if the outlook becomes more uncertain, the case for retaining flexibility and reviewing again in May would be stronger, said Lowe.