RBA’s Lowe: Australian financial system is resilient and is well placed to deal with COVID-19
|Reserve Bank of Australia (RBA) Governor Philip Lowe is on the wires now, via Reuters, speaking on a panel at FINSIA's "The Regulators" Webinar.
Key quotes
“Australian financial system is resilient and is well placed to deal with COVID-19.”
“Capital and liquidity buffers that exist are available to be drawn upon if required to support the economy.”
“Important that lenders continue to support the flow of credit to the economy.”
“The future remains unusually uncertain.”
“One obvious source of uncertainty is the pace at which the various restrictions are eased. “
“Another source of uncertainty is the level of confidence that people have about their future.”
“Critical issue for us here in Australia is restoring people's confidence. “
“We remain prepared to scale up bond purchases again if necessary.”
“There is a limit to what can be achieved with monetary policy.”
Market reaction
Having faced rejection at 0.6600, AUD/USD extends losses to test 0.6550 amid cautious market sentiment, as Australia-China/ US-Sino trade tensions and rising COVID-19 cases worldwide weigh. RBA Lowe's cautious remarks add to the downside.
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