Headlines from Stevens' prepared speech earlier are here
- Favours the current 2 to 3% inflation target band
- Cautions on lowering the target
- Globally difficult to implement negative rates without hurting banks' earnings
- Chance of negative rates in Australia are low
- Says he expected mortgage rates would not fall by full 25bps last week
- Very unlikely Australia would be so desperate to consider helicopter money
More:
- Business hasn't responded to low rates with investment
- Monetary policy doesn't really affect business investment (What?)
- Monetary policy works via households, not businesses (hmmmm)
- Inflation is going to be pretty low for a while
.... Q&A finished now