Australia’s Economic Outlook - TD Securities

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FXStreet (Guatemala) - Jacqui Douglas, Senior Global Strategist, Rates and FX Research at TD Securities reminded that RBA Governor Glenn Stevens, made a keynote speech on ’The Economic Outlook’ in HK.

“He voiced an upbeat view on the global and domestic economies, comparing favourably with the dire global and financial market conditions prevailing two years ago when he last addressed the audience”.

“Overall, the speech read like a set of RBA Board meeting minutes, with a discussion of the global economy, including diverging global central bank monetary policy paths, followed by an upbeat assessment of domestic conditions”.

“The concluding remarks noted that the best course of action for monetary policy for Australia is that “a period of stability in interest rates could be expected”.

“Deputy Governor Philip Lowe made Opening Remarks on ‘Some Implications of the Internationalisation of the Renminbi’ in Sydney. Dep Gov Lowe said the process of China moving towards a flexible exchange rate regime, brings much promise, as it did when Australia made the same move. While there is no precedence of a country as large as China taking such measures, a change in Chinese Capital flows will have a definite impact on markets”.

“Lastly the RBA released its Half year financial market report , the RBA Financial Stability Review, reinforcing the Australian Banking and Finance Industry is well placed to deal with future crises. A new theme that did emerge was the need for institutions to be more vigilant on maintaining lending standards. We read this as a warning from the RBA to borrowers and lenders not to over commit should interest rates move higher and house prices stop rising”.

This news story is reprinted from www.fxstreet.com

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