- Says has been ample scope to lower cash rate to offset impact of increased bank funding costs.
- No sign supply of credit has been constrained by funding costs, tighter regulation.
- Cost to banks of tighter liquidity rules is small, well worth paying for more stable system.
- Says regulations will not make it harder for banks to fund any increased demand for credit.
AUD/USD trading at 1.0466/70 basically unchanged .
