Speech by Reserve Bank of Australia Deputy Governor Philip Lowe. The keynote address on economic conditions and prospects in the Australian economy to a Committee for Economic Development of Australia (CEDA) event
- Movements in China stock market likely to have only limited impact on overall Chinese economy
- On recent yuan depreciation, says not surprising China wanted greater currency flexibility
- These developments in China have coincided with signs of further slowing in Chinese economy
- China's handling of stock market crash has led some to ponder general direction of Chinese policy, this bears watching
- Notable that increased volatility in equity and commodity markets have not led to dislocation in other markets
- We are having to get used to less extraordinary growth in China
- Outside of China, economic data have mostly had a slightly more positive tone
- At some point beflore too long, we should hope US economy is strong enough for a Fed hike
- On Australia, Q2 GDP data suggest economy is continuing to grow at a similar rate to that of past few years
- Most other recent indicators consistent with a moderate expansion in the Australian economy
- Should not lose sight Australian economy has considerable ability to adjust
- Lower AUD helping economy in current downswing
- Flexibility of AUD, labour market and monetary policy helping cyclical adjustement in our economy
- Missing ingredient continues to be a lift in non-mining business investment
Headlines via Reuters
Full text: International and Domestic Adjustment
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Lowe's comments hitting the wires slightly ahead of the 0310GMT time expected
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I can't see too much in them that is controversial or surprising. Maybe that comment on the Fed is a little despairing (Maybe it translates as "Get on with it, you lot!" from central-bank speak)
