- Past easing clearly working to shift investors to taking more risk
- Shift in risk taking not yet a serious impediment to further policy easing
- Recent fall in $A makes economic sense, no surprise if it falls further
- Long rise in mining investment now over, coming fall could be ‘quite big’
- Rotation away for mining to be aided by growth in export volumes
- Level of global demand for Australian exports to stay high for long time
- Successful rotation would also need more demand for non-resource exports
- Reasonable to expect a pick up in consumption, but not past boom levels
- Broadly appropriate that fiscal policy in consolidation mode
- Would be good if business had more confidence, regulations playing a part
Clearly his speech is not putting any barriers in the way of a rate cut on August 6.
His comments are also very pointed about the falling AUD – he is talking it down further.
