The FT turning its sights on Australia today, on FastFT which is gated … but in brief:

  • The popular narrative expecting the Reserve Bank of Australia to slash interest rates next year hit a major roadblock this morning
  • RBA Governor Glenn Stevens said the price of money isn’t the issue; what matters is the exchange rate. And he’d prefer to see the currency at 75 US cents
  • Stevens said borrowing costs aren’t holding back the Aussie economy; confidence is. To bolster confidence, predictable policy is the best move he said

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More here (post from Ryan overnight): RBA’s Stevens says AUD should be closer to 0.7500

Ryan adds:

  • You can read the full interview here and it’s not as dovish as the market might have been looking for.