RBA governor Stevens:
- Says open to "possibility of further policy easing"
- Says AUD needs to fall further, notes lot of countries would like lower currencies
- Says inflation likely to remain low, even if AUD were to fall further
- Economy needs more demand, should try to "create" upside risks to growth
- Says monetary policy alone cannot deliver everything needed
- Should not expect too much from policy, can lead to bigger problems
- Says ever lower interest rates have risks given household debt burden
- Government right to not cut spending further in the near term
- Much more should be done on infrastructure, including using govt debt
- Infrastructure held back by decision making, political disagreements
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Stevens is pushing for more government action on fiscal policy, infrastructure spending. I wonder if Treasurer Hockey will tell him to get a better job if that's what he wants?
