Australia kept its benchmark interest rate constant on Tuesday, citing “uncertainty surrounding the economic outlook” in his final speech as governor of the country’s central bank.
Following a series of increases intended to control escalating costs, the rate has been held at 4.1 percent for the third consecutive month.
Since Lowe’s term as governor will come to an end on September 18, his current deputy Michele Bullock will take over.
Lowe said inflation — which was recorded at six percent in the June quarter — had “passed its peak” but was “still too high and will remain so for some time yet”.
The bank’s priority is to return inflation to 2-3 percent by late 2025.
Lowe added: “Inflation is coming down, the labour market remains strong and the economy is operating at a high level of capacity utilisation, although growth has slowed.”
He said further rates rises could not be ruled out but that these would “depend upon the data and the evolving assessment of risks”
