Reserve Bank governor Phil Lowe had scaled back his public appearances, but held court with some of the market’s biggest traders on Thursday.
Reserve Bank governor Philip Lowe briefed traders at the country’s major banks at a private lunch hosted by Barrenjoey, two days after the central bank surprised marketsDr Lowe attended the investment bank’s event after declining to make a public address on the outlook for monetary policy, which he has done after the first RBA board meeting of the year since 2017.
An RBA spokeswoman confirmed that Dr Lowe attended a lunch at Barrenjoey and that he reiterated “what was in the statement and no more”, adding that the briefing was “an opportunity to listen to other people”. The RBA on Tuesday lifted the cash rate to 3.35 per cent, but the hawkish statement led economists to revise upward their expectations of the peak cash rate to 4 per cent.Sources said the briefing at Barrenjoey is an annual event, attended by the treasury desks of the big four banks – the largest and most influential participants in the local fixed income market.
“There is still a conspicuous lack of scheduled speeches from Martin Place, though there is a 15 February appearance before the Senate Economics Legislation Committee ahead of semi-annual parliamentary testimony on 17 February,” National Australia Bank economists wrote in a note to clients on Friday morning.A private briefing by a senior RBA official hosted by an investment bank for its client is not uncommon and considered helpful in effectively communicating policy stances to the market.
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