More on RBA's Kent speech & comments - commodity prices, AUD
The Australian Financial Review have quick recap piece up on comments this morning from RBA Assistant Governor (Economic) Christopher Kent. (Kent is effectively the 'chief economist' of the RBA.)
- China's transition from heavy industry and exports to a more consumer-driven growth model has left little scope for a recovery in commodity prices
- "The Bank's index of commodity prices has fallen by about 50 per cent from its peak, but is still almost 80 per cent above early 2000 levels."
- " ... the changing nature of China's development implies that the potential for commodity prices to rise from here is somewhat limited"
- if commodity prices were to fall further there would need to be a further fall in the exchange rate.