Reserve Bank of Australia Governor Glenn Stevens appearing before the House of Representatives' Standing Committee on Economics
Here is his Opening Statement by Glenn Stevens, Governor, to House of Representatives Standing Committee on Economics, Sydney (that's the full text)
Headlines (via Reuters and Bloomberg):
- Says activity outside resources sector improving
- Real GDP growing at a lower pace than what we used to think of as normal
- Says easy monetary policy and lower AUD helping growth
- Adjustment we have been experiencing for a couple of years will likely continue
- Economy likely to expand at moderate pace
- Says employment market noticeably better than we expected a year ago
- Says watching financial market turbelence, labour market
- Low inflation could provide scope for further easing if needed
- Underlying inflation measures are low
- Economy growing at modest pace in face of considerable challenges
- Market anxiety over intentions of China policymakers reflected in capital flows
There will be a Q&A after the opening statement, so plenty more to come
ps - I did a preview here with the key context of what's on Stevens' mind
- TL;DR, he doesn't want the AUD to appreciate from here, so he's gonna stress the risks to the Australian economy rather than the positives
- Will he be successful at capping the AUD? He is going to have work real hard to do so, the AUD has been remarkably resilient (except against the yen ... D'uh)
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More:
- Demand for labour increased at an above average pace
- Mining investment drop to last at least another year
- Cannot say yet if financial turmoil to impact aggregate demand
More again:
- Global markets 'dropping their bundle' at the moment
- Uncertain how global market turbulence will play out
- Says he is surprised at extent of market reaction to China's changes in yuan policy
- Says the adjustment in the yuan was quite small
- Chinese policy makers cannot fix every problem, China's economy is weaker than Chinese would like
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Stevens retires in September of this year
