Comments from Reserve Bank of Australia Deputy Governor Lowe:

  • Further exchange rate fall would help economic transition
  • Says recent rate cut to suppport consumer demand, home construction
  • Not in Australia's interests to engineer debt-fuelled consumption boom
  • Says "fairly fine line" to walk on rates, trying to strike prudent balance
  • Missing factor domestically is still non-mining investment
  • Sustained lift in non-mining invesment seems "some way off"
  • Business setting too high a hurdle on new investment for low rate world
  • Average return on savings globally to stay low for protracted periodmore to come

Full text: Managing Two Transitions

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Also, stay tuned - Q&A coming up