Investing.com - The Reserve Bank of Australia's new governor, Philip Lowe, said Thursday that inflation should remain low for some time with a gradual pick up as the labor market strengthens.
Lowe, speaking to the House of Representatives' Standing Committee on Economics in Sydney in his first public comments since he took over as governor from Glenn Stevens on Sunday.
Lowe expects the economy to continue to be supported by low interest rates and the depreciation of the exchange rate since early 2013.
"Importantly, the drag from the fall in mining investment will also come to an end. While mining investment still has some way to fall, our estimate is that around three-quarters of the total decline is now behind us," Lowe said.
"The latest available data suggest that there has not been a major interruption to growth, although this is partly because the economy is being supported by fiscal policy, including expenditure on infrastructure," he said.