RBA’s Debelle: Aussie rates do not have to rise in line with global peers
|Comments from RBA’s Deputy Governor Guy Debelle crossing the wires –
- No automatic reason to follow rate hikes abroad
- Says global pressures mean Australian rates lower than they would otherwise be
- Says cash rate set at level appropriate for domestic policy objectives
On Neutral Rates
- Says neutral policy rate likely to remain lower than in the past
- Estimates neutral rate has fallen by around 150 bps since 2007
- Says risk aversion since gfc contributed to fall in neutral rate, may reverse in time
- "No significance" should be read into fact neutral rate was discussed at july policy meeting
On AUD
- Central bank stimulus abroad has put upward pressure on a$
- Says a rising AUD lessens benefits of faster global growth for Australia
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