RBA’s Debelle: Does not expect a rate hike for three years
|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.
Additional quotes
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.
Market reaction
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.
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