RBA’s Lowe stresses importance of flexibility

Australia must ensure that its economy remains flexible so that labour and capital can move to where they are most useful, Philip Lowe, an assistant governor at the country's Reserve Bank has warned.

"We need to keep the focus on removing impediments to capacity expansion so that the economy can grow without causing inflation," Lowe said. "And we need to find ways of housing our rapidly growing population and dealing with the environmental issues that can come with growth."

Lowe also noted that it was important for Australia to manage the risks that can come from increased exposure to movements in commodity prices and the relatively large cyclical fluctuations of some of the Asian economies.

Lowe made the comments on 19 October.

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