In Trinity News: The School was fortunate to host Dr Phillip Lowe, the Governor of the Reserve Bank of Australia (RBA), for an economics Q&A session. The Governor was fresh from the Senate inquiry. Governor Lowe is arguably the most influential economist in Australia, and our Head of Economics, Mr Moore put it, he not only understands the history of economics but is himself making history. In such a significant time for the RBA and monetary policy in Australia, Governor Lowe generously gave his time to a small but highly engaged group of senior Economics students.
For one and a half hours we hit Governor Lowe with a series of questions, which he said put to shame the questions which he faced from politicians in the senate last week. His insights were most compelling as he shed light on the current state of Australia’s economy and the process that goes into the RBA’s cash rate decisions.
Two years ago, when Governor Lowe was last at Trinity, he made a prediction with Mr Moore as to where the ASX200 and the value of the Australian dollar would be. Yes, Mr Moore’s predictions were wrong. Once again, they made their forecast for 12 months’ time. I am unable to tell you what Governor Lowe’s predictions were, but I can tell you Mr Moore’s: The AUD will fall to 0.51 USD and the ASX 200 to 4900 points during the year. My advice would be to expect the exact opposite. To this Governor Lowe jokingly remarked, “Wow, you are bearish!”
Governor Lowe explored various possibilities with the US-China trade war and explained what his advice to the government would be. He also raised just how lucky we are to live in Australia where we have a robust and stable economy. It is easy to be caught up in negativity in this day and age, but we are all very fortunate to live in ‘the lucky country’.
The Q&A was immensely advantageous for those of us studying Economics for our exams, and more generally Governor Lowe’s advice is valuable for anyone who is affected by economic conditions, which in my estimation, is everyone.
It is reassuring to know that we have such a reasonable and well-informed person captaining the ship as we enter rough, uncharted seas in the global economy. On behalf of all present, I express my immense gratitude toward Governor Lowe coming to Trinity.
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