From John Edwards in an interview with James Glynn in the Wall Street Journal. In brief:
- “The currency does look a bit overvalued and I’ve no doubt we’d be better off with a cheaper currency”
- “I hope to see it. We might have to wait until global markets are more convinced that the U.S. is actually about to move on the overnight rate”
- “We have seen lower commodity prices, which would often be associated with a lower currency”
- “In our terms, of course, we have record-low interest rates. Our problem is that they are zero in the U.S., the U.K. and Japan”
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Yep. Edwards saying again that we may need to wait until the Federal Reserve raises rates before the Australian dollar starts to trend lower.
More detail at (The Wall Street Journal is often gated, so if you’re unable to access the article try a search of Google news using the headline): Australian Dollar Is Overvalued, Says RBA’s Edwards
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John Edwards is a member of the Reserve Bank of Australia’s monetary policy setting board.
