Australian Treasurer Morrison speaking to Bloomberg 15 Oct

"The bank has been making the right call on where we have rates. Our bank has been slow and patient on the way down and is being slow and patient when it comes to going the other direction.

The initiatives taken by our banking regulator have addressed what has been going on in our housing markets, and that has removed the need for the bank necessarily to take decisions for that reason. Whether there are other reasons for them to raise in the future is a matter for them."

Australian interest rates have been held at 1.5 % by the RBA since August 2016

The interview was conducted on Friday but published over the week-end and Morrison also had this to say:

  • Flat wages growth reflects the consequences of the end of a massive mining boom. Government is taking steps to drive investment and that should lift wages.
  • The government is increasing investment in infrastructure through funding new airports, inland rail links, defense spending and hydro-electricity.
  • Housepricesare based on underlying fundamentals. "The value of housing is high in Australia because they are real, based on supply and demand, not credit bubbles."
  • Exporters have adjusted to the Australian dollar's resilience and can absorb the "vagaries of the currency."
  • Worries about trade wars and a spike in protectionism have eased. "For all the talk of protectionism, the bark has been far worse than the bite."
  • Overall economic outlook remains robust. "We have a good growth story."

More from Bloomberg here.

I'm stepping away now so enjoy the rest of your week-end and I'll see you back here Monday morning for more fun and games, Hurricane Ophelia permitting!

Morrison - Interest rates and AUD at appropriate levels.