US-China trade war hurting global economy: Reserve Bank of Australia

Philip Lowe casts doubt on US narrative of Team West vs China

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Reserve Bank of Australia governor Philip Lowe (Flickr photo)

Reserve Bank of Australia governor Philip Lowe (Flickr photo)

TAIPEI (Taiwan News) – Reserve Bank of Australia Governor Philip Lowe said on Tuesday (Aug. 20) that the uncertainty brought on by the U.S.-China trade war is the biggest risk to global economic stability, the Sydney Morning Herald reports.

“I do not have a clear idea of what strategy the US has. [Some in the US] say that it is time for Team West to muscle up against China, and that is very worrying,” Lowe told business leaders during a private briefing.

The Reserve Bank of Australia has not yet confirmed the remarks. However, policy meeting minutes published on Tuesday revealed similar worries that the uncertainty of trade policies have negatively impacted the world economy, reports the Liberty Times. The bank’s committee also warned that the risk to the global economy increases as trade tensions build, although it still expects reasonable growth in the near future.