- Rates set with recognition of AUD effect on economy.
- Inflation is currently consistent with target.
- Slowdown in China economy has come to an end.
- Rates low, time needed for policy to do its work.
- There is a good deal of interest rate stimulus in the pipeline.
- Sees good reasons for non-mining investment to strengthen in due course.
- House prices rising, share prices up is evidence of public working.
- Reasonable prospects economy will have seamless transition from mining boom peak.
- Policy not seeking particular exchange rate response.
- Global growth has been pretty reasonable.
- Appropriate rate is current low one Australia has.
- He's not uncomfortable with current rate setting.
- He fully sees logic behind QE policies.
- Current low rate appropriate, not an emergency setting.
- He is surprised AUD has not fallen more.
- Rising FX rate is contractionary for economy.
- Higher AUD means cash rate lower than otherwise.
- Options differ on whether AUD overvalued.
- AUD is somewhat overvalued, but not by huge amount.
- Current AUD level does not warrant intervention.
- RBA will alter rates in election year if needed.
Reaction details (22:43)
- 2 minutes after, AUD/USD moved higher by 20 pips from 1.0234 to 1.0254, trades 1.2545 (+10 pips) last.
- In 10 minutes following this headline, AUD/USD spiked higher further to 1.0290, trades 1.0287 (+42 pips) last.
Analysis details (23:06)
- These comments from Governor Stevens suggest a positive outlook for the Australian economy and that rates will be kept on hold for the time being.
- Cash rate futures now price the odds of a rate cut in march at just 21%.
21 Feb 2013 - 22:35 - - Source: Newswires
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: