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Australasia, Forex

Australian economy may have reached gentle turning point – RBA

CANBERRA, Aug 9 (Reuters) – The Australian economy may have reached a gentle turning point and quarterly economic growth numbers are expected to strengthen gradually, Reserve Bank of Australia Governor Phil Lowe told a parliamentary committee on Friday.

“There are signs the economy may have reached a gentle turning point,” Lowe told the committee in Canberra, though he reiterated it was reasonable to expect an extended period of low interest rates.

“The major uncertainty continues to be the trade and technology disputes between the United States and China. These disputes pose a significant risk to the global economy.”

The central bank held rates at an all-time low of 1% at a policy review on Tuesday, after cutting them by 25 basis points in both June and July.

Markets expect global central bank stimulus, including a larger than expected 50 basis point cut by New Zealand on Wednesday, will compel the RBA to cut again before year-end. (Reporting by Colin Packham and Swati Pandey; Writing by John Mair; Editing by Sam Holmes)

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