Comments by RBA deputy governor Guy Debelle in Sydney

  • Any rise in rates is still some way off
  • Should that turn out not to be the case, there is scope for further rate cuts
  • It is the level of rates that matter and they can still move lower
  • Floating exchange rate matters, remains an important shock absorber
  • Herd response by banks to falling house price risks amplifying the downturn
  • Household debt is high but not clear how much is too much

A bit of a negative take there by Debelle. Most of his comments there aren't anything new but it's a sign that the central bank are possibly looking at the option to maybe move towards or be more open towards cutting rates next year if the economy continues to stutter. This of course follows after the sluggish Q3 GDP report yesterday which sees consumption start to hit a snag in the Australian economy.

AUD/USD falls to a low of 0.7212 from 0.7220 levels on the back of Debelle's comments here.