RBA’s Debelle: Aussie rates do not have to rise in line with global peers

Omkar Godbole FXStreet Contributor

Comments from RBA’s Deputy Governor Guy Debelle crossing the wires –

No automatic reason to follow rate hikes abroad
Says global pressures mean Australian rates lower than they would otherwise be
Says cash rate set at level appropriate for domestic policy objectives

On Neutral Rates

Says neutral policy rate likely to remain lower than in the past
Estimates neutral rate has fallen by around 150 bps since 2007
Says risk aversion since gfc contributed to fall in neutral rate, may reverse in time
"No significance" should be read into fact neutral rate was discussed at july policy meeting

On AUD

Central bank stimulus abroad has put upward pressure on a$
Says a rising AUD lessens benefits of faster global growth for Australia

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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