RBA and BoC governors speaking: Mixed outlooks on economy and coronavirus


Editor's note: This is a developing story.

We have both the governor of the Bank of Canada and Reserve Bank of Australia crossing the wires at the same time as the market is being hit with a concerning coronavirus update which is biting into risk appetite and commodity complexes performances.

Philip Lowe and his Canadian counterpart Stephen Poloz were speaking at Australia-Canada economic leadership forum in Canada.

Reserve bank of Australia Lowe comments

  • Reserve Bank of Australia gov Lowe says outlook in Australia is improving.
  • Reserve Bank of Australia gov Lowe says coronavirus is having an uncertain impact.
  • RBA gov Lowe says Chinese policy stimulus will be good for Australia.
  • Low interest rates are working, going to take time.
  • Says he is not obsessed with getting inflation back to target in a hurry. 
  • Lowe says conscious in rate decisions that low rates encourage people to borrow more.
  • Says uncertainty on climate policy has been an issue in Australia
  • Says policy certainty would encourage investment.
  • Government and business should use record low interest rates to invest more.
  • Economic implications of climate change are profound.
  • Conscious in rate decisions that low rates encourage people to borrow more.

Bank of Canada Poloz key comments

  • Bank of Canada gov Poloz says the Canadian economy is in a pretty good place.
  • Poloz says rates would have to have fallen further without fiscal stimulus in Canada.
  • Poloz says lowering rates could increase risks from higher debt levels.
  • Poloz says macro prudential rules help manage risks from debt.
  • Poloz says Canadian economy is in a pretty good place.
  • Poloz says rates would have to have fallen further without fiscal stimulus in Canada.
  • Poloz says lowering rates could increase risks from higher debt levels.
  • Poloz says macro prudential rules help manage risks from debt.
  • Says level of Canadian government debt not an issue right now.

Market implications

 

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