RBA’s Harper: Won't follow Fed on rate increases
|In an interview with the Wall Street Journal (WSJ), Reserve Bank of Australia (RBA) board member Ian Harper said, "the market is reading a whole lot more of the American situation to being relevant to our situation, than what the bank is doing," with reference to rate hikes and differences observed in inflation.”
Additional quotes
"Given all the recent communication, there is no mystery as to why the bank is signaling it will remain patient."
“Full employment is within reach, questioning "why would you want to stop?"
“NAIRU may very will be falling, flagging the moderate wage growth that has been observed, even as the labor market tightens.”
“Re-emphasised the focus on acting after the realization of the central bank's goals, as opposed to acting on forecasts.”
“Welcomed a detailed review of the Bank's operation of monetary policy.”
Market reaction
Despite these comments, AUD/USD is unfazed, as it holds the higher ground just above 0.7200, benefiting from stabilizing risk tone on hopes for diplomacy on Ukraine tensions.
The spot was last seen trading at 0.7204, adding 0.31% on the day.
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.