Reserve Bank of Australia head of economic research John Simon
- Says that low rates, on their own, are not inherently risky
- Low rates entirely appropriate given current weak global growth
- Concerns about low rates are probably overdone
- Suspects any future economic problem will come from an unexpected direction
- Need to look for seeds of the next crisis before it happens
- Says comments are his personal views and have no policy implications
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If his comments had have hit around the time the market was holding stronger conviction of imminent RBA rate cuts these comments might well have prompted some AUD selling. The market is lot more mixed on the potential for RBA cuts at present, though ... so these are sort of drifting on by and the AUD is not impacted greatly.
(ps. If you're new the FX, treat my commentary paragraph as a guide to how the FX market works)
