RBA Governor Stevens has delivered a speech on “Economic Conditions & Prospects” to a business luncheon in Brisbane. This speech was the Governor’s first outing since April and a good chance to provide an update on current RBA thinking. It came with the usual “disclaimer” about not sending any policy messages but the Governor diverted early on from his prepared remarks to note that “the Board deliberated for a very long time yesterday”. We don’t know the context of those deliberations but it is reasonable to assume they focussed on the need for further interest rate stimulus. Later in his speech Stevens noted that the RBA would continue to assist the growth transition – “we cannot fine-tune it – no one can promise that – but we will do what can reasonably be done”.
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Commonwealth Bank