RBA’s Bullock: Investors chasing yield, pushing up asset prices

Dhwani Mehta FXStreet

Michele Bullock, RBA Assistant Governor (Financial System), was on the wires earlier today, with the key comments reported by Bloomberg are hereunder.

Investors chasing yield, pushing up asset prices.

The economic environment is uncertain.

"There's no compensation for the risk that some of these corporates" are taking.

Companies "might be impacted by a global economic downturn".

If the relationship between unemployment and inflation reasserts itself there will be a "snap back" in risk-free rates and a likely fall in asset prices in other areas … "if that happens and people are indebted and they've got lots of leverage you've potentially got issues for the financial system.

The Aussie was unchanged on the earlier comments that did not touch upon RBA's monetary policy outlook, now meandering just ahead of four-week lows of 0.6803. The spot lost nearly 40-pips on a big miss on the Australian Jobs data for October.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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