Glenn Stevens took to address the RBA for the final time as Governor this morning and highlighted various hurdles that might have to be affronted.
Touching on his and the RBA’s work over the last decade he defended his targeted inflation levels which had remained between 2-3% target, unemployment and the decision to cut Australia’s interest rate to an all-time low of 1.5%. Emphasising that many of these decisions and schemes were implemented in challenging times. Citing thrifty debt carrying households and the general world economic scenario as protagonists.
Governor Stevens underlined the Bank of Australia’s flexibility to tackle the country’s limited growth and endorsed a lenient approach to reaching its inflation targets. Stevens endorsed the idea of Borrowing for ‘’the right investments assets; long lived assets that yield and economic return.”
Stevens highlighted the public debt figure which equates to 40 % of GDP and household debt; which is triple that. Stevens disagreed with the Idea of easing saying- once started that it was very difficult to know when to stop. His successor and current deputy takes the post shortly.
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