RBA's Debelle: Global economy runs risk of self-fulfilling downturn
Reserve Bank of Australia Deputy Governor Guy Debelle speaking.
The topic is "Risks to the Outlook"
Headlines via Reuters:
- says China - US trade dispute causing significant uncertainty for business
- businesses waiting to see how uncertainty resolves rather than invest
- says reluctance to invest runs the risk of a self-fulfilling downturn
- plausible that effects of technology dispute will be larger than that of tariffs
- firms might have to chose between east and west rather than selling into global market
- says trade is increasingly being used as a bargaining tool of choice
- China stimulus has, so far, offset impact of trade dispute on Australia
- says primary risk to domestic economy is outlook for consumption
- says do not expect much of an increase in wages growth, employment seen "reasonable"
- evidence that fall in house prices has reached its end, may start supporting consumption
- says assumes households will spend around half of tax refunds
- says increasingly necessary to assess the risks from climate change
AUD not much changed on the speech. The focus a bit later on is the jobs report: