RBA governor, Philip Lowe, remarks in the Q&A session after his speech
- The costs still outweigh the benefits of negative rates now
- Negative rates still extraordinarily unlikely
- Would consider negative rates if all the world's major banks had negative rates
This is a similar kind of rhetoric to his remarks from last week here. Nothing has changed yet but as much as it is important to follow what the Fed is doing, Lowe's stance is a rather weak one when it comes to having to put his foot down on the issue.
For now, the RBA is pretty much in a similar spot as the BOE in the sense that negative rates may very well be inevitable but for now, they are adopting a wait-and-see approach.
