Australia central bank watching energy price developments: official

[SYDNEY] Australia's central bank is watching the country's energy policy developments and the impact higher electricity prices might have on businesses and private investment, a senior official said on Tuesday.

Australia's conservative government is set to reject widespread calls for a clean energy target in a policy focused on keeping the lights on affordably over the next several years.

The energy crisis has grown as states promoted rooftop solar and wind power over the past 10 years in the absence of a stable carbon policy at the national level, and let coal- and gas-fired plants shut, reducing crucial back-up for wind and solar.

Rising retail electricity prices were not a dominant factor that could impinge on household spending although it might add to inflation in coming quarters, Reserve Bank of Australia (RBA) Assistant Governor Luci Ellis said at an event in Sydney.

REUTERS