RBA governor Stevens: Further fall in AUD likely to occur

RBA Governor Stevens appearing before the Australian parliament's House of Representatives' Standing Committee on Economics.

• Says says economy growing at below trend pace
• Says inflation is low and appears likely to remain so
• Further fall in AUD likely to occur
• Says commodity prices have fallen quite sharply in some cases
• Says monetary policy still has capacity to give additional support to economy
• Fall in key export commodities hurting Australia's terms of trade
• Says mining downswing will accelerate this year
• Bank's forecasts assume lower path for interest rates, but is not a commitment to action
• Says domestic demand outside mining mixed
• Public sector spending still fairly subdued
• Says working with other regulators on managing potential risks from rise in housing investment
• Developments in the Sydney housing market remain concerning; not alarming elsewhere
• Mone to come etary policy is still able to give extra demand support
• Possible that monetary policy's "power to summon up additional growth in demand could, at these levels of interest rates, be less than it was in the past"
• Unwise to react to one monthly jobs number
• Says unemployment has been edging up, to keep happening for little while yet
• Says unemployment remains low by historical standards

Share this: