Another speech, another reference to the economy being at a “gentle turning point” according to Reserve Bank governor Philip Lowe, who used the phrase in the post-RBA board meeting statement yesterday, which described another cut in the cash rate to a record low of 0.75%.
In remarks he made last night at a business dinner in Melbourne, he found more to be optimistic about:
"The economy has been through a soft patch recently, but we are expecting a return to around trend growth over the next year. There are a number of factors that are supporting this outlook. These include the low level of interest rates, the recent tax cuts, ongoing spending on infrastructure, signs of stabilisation in some established housing markets, and a brighter outlook for the resources sector. Together, these factors provide a reasonable basis for expecting that the economy will remain on an improving trend from here."