RBA Governor Glenn Stevens speaking in the Australian parliament before the House of Representatives’ Standing Committee on Economics.
- Inflation consistent with target
- monetary policy playing part to support demand, support spending
- Pat year not as bad as feared
- Board has been comfortable with significant easing
- Board has open mind on whether further cuts needed
- resource sector investment to fall significantly over the next few years
- Signs of significant increase in dwelling investment, only in early stages of upturn
- Sees subdued government spending
- Below trend growth to continue a bit longer
- Resource exports to continue to rise strongly
- FX rate has behaved as expected by declining
- the RBA board has been comfortable cutting rates amid a tame CPI
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There will be more to come as the testimony continues. AUD/USD trading higher – his comments so far are pretty much what he has been saying in the past, there isn’t anything new so far and nothing overly newly bearish for the currency. I’ll continue with his comments as they come, below:
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- Have to question assumption solid growth to continue
– The flow of comments has halted. I’ll continue with more comments as they come out in a new post.
To conclude this post, here is the full text of his opening statement: Opening Statement to House of Representatives Standing Committee on Economics
