- Expects period of stability for interest rates
- Does not see risk of persistent and serious rise in inflation
- Says subdued wage growth to limit inflation, even after impact of lower AUD
- Rising asset prices bear watching, investors should be aware of risks in housing
- Lower AUD since last April will help economy, uncertain on future trajectory
- Says home building to rise strongly, export volumes already up strongly
- Early signs of improvement in hiring intentions, business confidence
- Sees encouraging evidence that handover from mining is beginning
There is not much in the way jawboning the AUD lower in there …
AUD/USD up 25+ points as I type. There was an expectation of some sort of jawboning, which isn’t in his speech. He did reiterate the ‘period of stability’ for interest rates (there had been some chatter in the past days gathering of a possible rate hike).
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RBA governor, Glenn Stevens speech titled “The Economic Outlook” (link is to full text) at Annual Credit Suisse Asian Investment Conference in Hong Kong
Also – Glenn Stevens will be speaking again later, at 0600GMT, participating in a panel discussion at the same conference
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