The Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said that he doesn’t expect a rate hike for three years, in a scheduled speech on “Monetary Policy in 2020” at the Australian Business Economists webinar.
Policy action has reduced borrowing costs.
Bond buying program means A$ is lower than it otherwise would be.
Program needed as Australian 10-year yields were higher than in peer nations.
Must be careful not to remove policy stimulus too early.
Australian government debt is very manageable.
Federal government and state debt are "absolutely sustainable".
Reiterates board does not expect to increase the cash rate for at least 3 years.
Materially lower jobless rate needed to lift wages, inflation.
Banks have strong balance sheets to support economy into recovery.
Expects average mortgage interest rate paid by households to decline further.
News about vaccines should help bolster confidence.
Likely some time before vaccines widely available and distributed.
AUD/USD pays little heed to the comments from the RBA’s Debelle, as it clings to gains above 0.7300. The spot was last seen trading at 0.7310, adding 0.39% on the day and close to daily highs of 0.7317.
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.