Australia’s central bank sees long road to full recovery

A man smokes next to the Reserve Bank of Australia headquarters in central Sydney, Australia

The outlook for the Australian economy remains very uncertain and it will take a long time to reach pre-pandemic levels of output, despite the positive news on coronavirus vaccines, a top central banker said on Tuesday.

Answering questions after a speech, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle also emphasised that the unemployment rate needed to be a “fair bit” lower to generate needed growth in wages and inflation.

Debelle said the RBA’s shift to quantitative easing by buying longer-dated government bonds had worked to lower the local dollar, which was a boost to domestic demand and employment.

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