• Pushes back against near term cuts
  • AUD quite likely to be lower in a year vs now
  • 0.75 in AUD/USD is better that 0.85 (NSS)
  • Says official rate cuts need to be delivered in a way that boosts confidence rather than remind people of the economy’s woes
  • Drop to $60 in oil is bullish for the global economy

Speaking in the AFR

AUD/USD tanked on the bold headline more than anything and he clarifies the first comment about near term rates by saying that jobs and inflation were roughly where the central bank expected them to be.

“The economy is not in recession, it’s not contracting, we’re not having hundreds of thousands of jobs lost over a year. So I think we need to be careful with the language, just to convey to ­people what’s going on.”

You can read the full interview here and it’s not as dovish as the market might have been looking for.

AUD/USD dropped to a long-term low of 0.8217 on the headlines but immediately bounced 50 pips.