RBA’s Harper: “I'd like to see the AUD rate weaker “
|The Australian Today reports comments from RBA’s board member Ian Harper, following his interview with the WSJ earlier today.
Key Points:
“Economists say that a serious trade battle between the world's two biggest economic powers (US & China) would likely hammer the Australian dollar ... in that scenario, a weaker Aussie dollar would help the local economy, while policy makers in Beijing would also likely take action to prop up Chinese growth ... "You would expect some countervailing action to stimulate Chinese economic activity"
"I'd like to see the (Australian-dollar) rate weaker than where we've seen it over the last 2-3 years, that's for sure"
But he does not a sudden decline on the horizon
Forecasting a rebound in economic activity from the unexpectedly weak third quarter
Economy was weak in the absence of strong non-mining investment and government spending
"Non-mining business investment ... It has been growing, but it needs to grow faster."
Employment growth is weak
Retail spending isn't as strong as it otherwise could be
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.