RBA’s Debelle made no comments on monetary policy or economy
|The Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle is back on the wires this Thursday, via Reuters, making a speech titled “Progress on Benchmark Reform” at the ISDA 34th Annual General Meeting in Hong Kong.
It’s worth noting that Debelle did not touch upon the topics of the monetary policy or economic outlook in his speech.
Key Points:
“First, the end of LIBOR is approaching. Market participants should continue preparing for this by transitioning to alternative risk-free rates.
Second, it is prudent for users of all benchmarks to have robust fall-back provisions in their contracts, not just those referencing LIBOR. ISDA's work on fall-backs is progressing well, and we encourage all users of interest-rate benchmarks to adopt ISDA's fall-backs once they are finalized.
Third, most jurisdictions in the Asia-Pacific region have chosen to strengthen their credit-based benchmarks. This includes Australia, where BBSW remains robust. Credit-based benchmarks can coexist alongside risk-free rates when they are supported by liquid underlying markets. Users can then choose the benchmark that is most appropriate for their circumstances.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.