RBA’s Debelle: Monetary policy working through many channels, having an impact

Extending his previous comments at the panel discussion in Sydney, the Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle recently praised the monetary policy.

Key quotes

Monetary policy working through many channels, having an impact.

Lower rates have an effect through the exchange rate, lower debt payments.

Not worried about bank interest margins.

Monetary policy works with long and variable lags, not much time has passed yet.

Need to give it more time for policy to work.

FX implications

While overall trade sentiment seems to the reason behind the AUD/USD pair’s recent pullback to 0.6800, comments like this tame the fears of further monetary policy easing, triggered after the recent downbeat Australian statistics.