RBA’s Debelle made no comments on monetary policy or economy

The Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle is back on the wires this Thursday, via Reuters, making a speech titled “Progress on Benchmark Reform” at the ISDA 34th Annual General Meeting in Hong Kong.

It’s worth noting that Debelle did not touch upon the topics of the monetary policy or economic outlook in his speech.

Key Points:

“First, the end of LIBOR is approaching. Market participants should continue preparing for this by transitioning to alternative risk-free rates.

Second, it is prudent for users of all benchmarks to have robust fall-back provisions in their contracts, not just those referencing LIBOR. ISDA's work on fall-backs is progressing well, and we encourage all users of interest-rate benchmarks to adopt ISDA's fall-backs once they are finalized.

Third, most jurisdictions in the Asia-Pacific region have chosen to strengthen their credit-based benchmarks. This includes Australia, where BBSW remains robust. Credit-based benchmarks can coexist alongside risk-free rates when they are supported by liquid underlying markets. Users can then choose the benchmark that is most appropriate for their circumstances.”