It would be pretty depressing, so late in the game, to see “gold medalist” Australia fall into a Swedish-type trap. I hope Mr Lowe is a lone voice:
Australian central bank Deputy Governor Philip Lowe urged vigilance on asset prices inflated by record-low interest rates and said government action is needed to encourage companies to invest.
“Very low global interest rates have been with us for some time. And it is likely that they will stay with us,” Lowe said in a speech in Sydney late yesterday. “But the longer it runs on without a pickup in the appetite for real investment, the greater is the potential for new risks to develop.”
Much healthier than any other advanced economy. So please Mr Lowe, shut-up or go home!