Australian central bank governor Philip Lowe said today he did not expect a recession in Australia in the coming years.
“I do not see a recession on the horizon,” he said.
Unemployment is at a 50-year low, and labor market participation is at an all-time high, Lowe told a business group.
“The number of Australians in employment is higher than ever and the number of job vacancies is at record highs, while households have strong reserves.”
High commodity prices have also pushed the country’s trade to a record high.
“Australia has a lot of positives, so we do not see a recession on the horizon. But if we have learned anything from the last two years, it is that we can not rule out anything,” Lowe said.
His statements come after continuous interest rate hikes in May and June, by 25 and 50 basis points respectively.
The central bank governor stressed that more increases are coming and did not rule out a further increase in interest rates by 50 basis points in July.
Source: Capital
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