Philip Lowe: Delta, the economy and monetary policy

Address by Mr Philip Lowe, Governor of the Reserve Bank of Australia, to the Anika Foundation, online, 14 September 2021.

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

Thank you for joining us today to support the Anika Foundation. This afternoon, I would like to talk about the implications of the pandemic for the economy and for monetary policy. But before I do that, I want to acknowledge the impact of the pandemic on young people.

The past 18 months have been very difficult for young Australians. Their support networks have been disrupted, leaving many young people feeling isolated and anxious about the future. Many have also missed out on events that would normally frame their lives, such as celebrating achievements with their peers. Their education has also been disrupted and, for many, it has been harder to get that valuable supportthat a one-on-one connection with a teacher can provide.

So, our young people are paying a heavy price. This is evident in the increasing incidence of mental health issues and the sharp rise in calls to support services. It is important that we remember this high price when we conduct a full accounting of the costs of the pandemic and the containment measures.