Lowe Says RBA Ready to Ease Again if Needed

The video discusses the factors contributing to demand growth in Australia, such as tax cuts, higher commodity prices, and infrastructure investment. It highlights the role of monetary policy in managing inflation and the potential need for further support if demand growth is insufficient. The video also covers the expectation of prolonged low interest rates and the commitment to achieving an inflation rate between 2% and 3% before considering higher interest rates.

Which of the following is NOT mentioned as a factor contributing to demand growth in Australia?

• Recent tax cuts

• Higher commodity prices

• Increased tourism

• Stabilization in the housing market

What is the board prepared to do if demand growth is insufficient?

• Reduce infrastructure investment

• Provide additional support through monetary policy

• Increase taxes

• Decrease commodity prices

What is the expected trend for interest rates in Australia according to the transcript?

• Interest rates will rise sharply

• Interest rates will remain low for an extended period

• Interest rates will fluctuate unpredictably

• Interest rates will be abolished

What is the board's target range for inflation in Australia?

• 1% to 2%

• 4% to 5%

• 3% to 4%

• 2% to 3%

Under what condition is it unlikely that higher interest rates will be considered?

• Until demand growth exceeds supply capacity

• Until commodity prices stabilize

• Until inflation is below the target range

• Until inflation is around the midpoint of the target range