The RBAs Stevens was surprisingly candid in today’s speech, just one day after the RBA decision.
– Notes how the rise of emerging markets is “is overwhelmingly positive for us in net terms” despite struggles in developed world.
– Says household demand may be dampened compared to early Aug assumptions
– Resource investment will not be dampened by recent events
– Outlook for global growth not as strong as three months ago
– It’s difficult to gauge the effects foreign QE may have on Australia
– Current state of anxiety in markets likely to persist in foreseeable future
The speech sounds like someone on the sidelines than someone considering cutting. No comments so far on AUD.
