30 Jul 2013
RBA Stevens speech recap: Still some scope to ease after last CPI
FXstreet.com (Barcelona) - Governor of the RBA, Glenn Stevens, is giving his annual speech to The Anika Foundation Luncheon in Sydney, and some explosive comments are now crossing the wires. The topic of the speech is current issues in economic policy.
According to RBA's Stevens, long rise in mining investment is now over, sayong that coming fall could be "quite big". Stevens said that easing is working to shift investors to taking some more risk, adding that shifti in risk taking not yet a serious impediment to further policy easing. Stevens remained dovish on his tone, saying that "still has some scope to ease after inflation data." On the Aussie value, Stevens wouldn't be surprised if it falls further, as "the fall makes economic sense."
On the fiscal policy, Stevens said it is broadly appropriate that in line with consolidation mode. Talking about chances of recovery, Stevens said it is reasonable to expect a pick up in consumption, but not past boom levels, adding that for a successful rotation there is a need for more demand for non-resource exports. Stevens thinks global demand for Australian resources will stay high for a long time. Lastly, he said that there needs to be more confidence among businesses.
According to RBA's Stevens, long rise in mining investment is now over, sayong that coming fall could be "quite big". Stevens said that easing is working to shift investors to taking some more risk, adding that shifti in risk taking not yet a serious impediment to further policy easing. Stevens remained dovish on his tone, saying that "still has some scope to ease after inflation data." On the Aussie value, Stevens wouldn't be surprised if it falls further, as "the fall makes economic sense."
On the fiscal policy, Stevens said it is broadly appropriate that in line with consolidation mode. Talking about chances of recovery, Stevens said it is reasonable to expect a pick up in consumption, but not past boom levels, adding that for a successful rotation there is a need for more demand for non-resource exports. Stevens thinks global demand for Australian resources will stay high for a long time. Lastly, he said that there needs to be more confidence among businesses.