Philip Lowe, Reserve Bank of Australia Governor, in the Q&A now following his earlier speech

  • Recent data suggests Q4 GDP may be little less than +0.5% q/q

(Lowe thus confirms he is an avid follower of ForexLive: Australian GDP data due today - why what is expected is wrong (too high ...)

More:

  • Says but such a result would not change our confidence in the outlook
  • Says hard to ignore internationl tax competition, but need to have fiscal discipline
  • Find US budget deficits troubling when economy so strong
  • Says tax not only factor in investment decisions
  • Recent announcement on tariffs by President Trump was very regrettable
  • proposed tariffs manageable but reprisals would be very damaging
  • History shows protectionism bad

And, here we go ... money shot:

  • at the moment would be helpful to have a lower AUD
  • But AUD not broadly overvalued
  • AUD around fair value, we have what we have

Headlines via Reuters

More:

  • Macroprudential measures on housing worked, should be part of tool box
  • 10% cap on investment lending is now redundant given slow down in lending

MOAR:

  • Our central scenario is that rates will rise, but not inevitable
  • Depends on how quick e get unemployment down
  • if rate rise comes quicker because of a stronger economy that would be good