- November hike lessens risk of uncomfortably high inflation, substantial increase in rates
- Clear economy is not currently growing too quickly, inflation currently not too high
- Rapid expansion of capital stock could mean Australian economy can grow quicker without generating inflation
- Rise in household savings has been remarkable, proving to be quite long lasting
- Forecasts assume household savings ratio stays high for a while yet
- If savings stay high, would reduce inflationary pressures of boom in business investment
I think we can label those comments somewhat “dovish” in nature. Not overly helpful if you’re an AUD/USD bull. The pairing sits presently at .9785.
