Reserve Bank of Australia Governor Lowe is speaking in the US.
- Says there is a high risk that the main effect of lower interest rates will be to push up the prices of existing assets rather than stimulate investment in new assets.
Huh. That seems to be about it from the RBA Gov.
AUD doesn't budge. If anything you'd take that comments as less dovish than otherwise. At the margin.
More:
- not optimistic that macro-prudential tools can effectively mitigate negative risks of lower interest rates because many risks reside outside formal banking sector.
Sheesh. Dunno but I think he might be incorrect as applied to Australia. Macro-prudential limits took the wind out of house prices rises in Oz.
More again:
- low rates are working, economy is slowly improving
- would not make any assumptions that the RBA will need to turn to far lower or negative rates to meet inflation targets or restore trend growth
Again with the less than dovish remark.
More:
- Negative rates are extremely unlikely in Australia
