RBA governor Stevens is addressing parliament’s House of Representatives’ Standing Committee on Economics. This is a 3-hour gig, so expect plenty of ongoing headlines.
RBA governor Stevens:
- Sees period of stability for rates
- AUD still high by historical standards
- Fed tapering proceeding as well as can be expected
- Monetary policy is playing its part in supporting growth
- Forecasts for global economy, if anything, have inched higher
- House building set to rise strongly
- Recent GDP data have not significantly change view of below trend growth
- Monetary policy very accommodative
- Inflation not rising as fast as the data would suggest
- Dwelling investment will rise strongly in period ahead
- Expects consumer spending to grow in line with income
- Labour market to remain soft for a while yet
- Non-resource capex bound to pick up at some stage
There will be much more to come – as I said above, this is a 3-hour show. And, as I said in the preview (link above), he won’t be talking the AUD up, but it will run into buyers on any fall. And it hasn’t managed much of a drop at all on his early reported comments. NFP tonight is dampener on it though.
Headlines are via Reuters
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Here is the full text of his opening statement:
Glenn Stevens, Governor: Opening Statement to House of Representatives Standing Committee on Economics
