• Further cuts in interest rates remain on the table

  • But must consider longer-term risks of lower rates, danger of leverage
  • Says policy makers should be wary of responding to short-term phenomena
  • Says has felt a somewhat lower a$ was necessary for economy
  • Says AUD adjustment is occurring, having an expansionary effect
  • Economy is making required changes, albeit slower than we would have liked
  • Says economic growth has been disappointing but hardly disastrous
  • Economy has performed remarkably well through lengthy period of shocks
  • Says labour market in better shape than we expected 3 to 6 months ago
  • Says share volatility likely to have small effect on China economy
  • Policy easing by beijing having positive effect on activity, property

Quick Headlines via Reuters

-

Speech from RBA Governor Stevens at the Anika Foundation.

There will be a Q&A following.

Full text of speech: Issues In Economic Policy