The Reserve Bank governor says the Australian dollar is up off recent lows because of how well the nation has handled coronavirus so far, but warns that will change if there is no major economic reform.
Key points:
- RBA governor Philip Lowe says the Australian dollar is not overvalued at its current levels of close to 70 US cents
- Dr Lowe warned that Australia will “meander along with mediocre growth” unless it undertakes economic reform
- He suggested tax, infrastructure, human capital, industrial relations, regulation and R&D as key areas for change
Speaking during an online panel discussion hosted by ANU’s Crawford School of Public Policy, Philip Lowe said a recent rise in the local currency from COVID-19 lows around 55 U