Reserve Bank of Australia Governor Glenn Stevens speaking at the Melbourne Institute 2015 Economic and Social Outlook Conference
- Economic rebalancing is occuring, aided by monetary policy
- Non-mining sectors generating respectable growth in employment
- Monetary policy very accommodative, likely to stay that way for some time
- If policy were to change, it would almost certainly be an easing
- Inflation is clearly no impediment to easing
- Housing market may be calming, too early to be sure
- Macroeconomic effect of banks raising mortage rates "may not be large"
- Significant share of households ahead on mortgage payments
- Mortgage rises so far equal to about one half of 25 bps cut
- Will keep changes in mortgage rates under "careful review"
- Roughly half way through period of declining mining investment
- Says business conditions outside of mining have been slowly improving
- Some encouraging developments on infrastructure investment
- Long period of discipline on budget spending likely to be needed
Quick headlines are via Reuters, bolding is mine
As expected, there isn't much really new here from Stevens. I bolded the "If policy were to change, it would almost certainly be an easing" ... yes, there is no sign of a tightening on the horizon ... with this comments Stevens is emphasizing that "monetary policy very accommodative, likely to stay that way for some time". The economy is recovering, Stevens driving home the point that RBA policy will remain supportive, the punchbowl is out on the table for some time to come
AUD is of a few points only, into the area where the buyers are currently clustered
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