‘Inflation no barrier to further easing if needed’ – RBA’s Stevens

By FXStreet FXStreet (Mumbai) – The Reserve Bank of Australia’s (RBA) Governor Glenn Stevens while speaking about issues in economic policy at the Australian Business Economists Annual Dinner, in Sydney, reiterated that inflation is no barrier to further easing, if necessary.

Mr. Stevens sounded optimistic on Australia’s growth prospects and noted that the economic growth is expected to pick-up over next couple of years.

Key Quotes:

Inflation no barrier to further easing if needed

“Hankering for policy fine-tuning” not supported by historical outcomes

Australian economic growth likely to pick up a bit over next two years

Range of data suggests activity in non-mining sectors improving

Business surveys above average, hiring seems to have stepped up

Inflation restrained by subdued wages, effect of lower A$ slow in appearing

Rba’s economic forecasts imprecise, markets focus too much on every small change

Influence of demographics too often ignored in economics

China’s demographics not favourable, India’s much healthier
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Source:: FX Street