Philip Lowe: Demographic change and recent monetary policy

Address by Mr Philip Lowe, Governor of the Reserve Bank of Australia, to the Anika Foundation Luncheon supported by NAB and the ABE, Sydney, 8 August 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
10 August 2018

It is a pleasure to be able to speak at the Anika Foundation lunch for a second time. As the father of three teenage children I know how important the work of the foundation is. Thank you all very much for your support.

Today, I would like to talk about a long-run topic and a short-run topic. The long-run topic is Australia’s demography and the short-run topic is current monetary policy in Australia. These might seem to be unrelated topics. But at the RBA, we are very aware that our decisions about interest rates are not made in a vacuum – that they are influenced by structural developments in our economy. And one of these important structural factors is changes in our demography.