Monetary Policy Decision left Australian cash rate unchanged at 2 %.
Quotes
Stevens to Yellen ... are central bankers duty bound to accommodate ? Have they usurped the mantle of the fiscal authorities? While we measure fiscal deficit, are we letting monetarists get away with accommodative monetary kiting? Is there a 'moral hazard' in cheap money policy?
Quotes
- Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia. Australia's terms of trade are falling.
- Overall, global financial conditions remain very accommodative.
- monetary policy needs to be accommodative.
- regulatory measures are helping to contain risks that may arise from the housing market.
- In other asset markets, prices for commercial property have been supported by lower long-term interest rates, while equity prices have moved lower and been more volatile recently, in parallel with developments in global markets.
- The Australian dollar is adjusting to the significant declines in key commodity prices.
Stevens to Yellen ... are central bankers duty bound to accommodate ? Have they usurped the mantle of the fiscal authorities? While we measure fiscal deficit, are we letting monetarists get away with accommodative monetary kiting? Is there a 'moral hazard' in cheap money policy?
