Reserve Bank of Australia Governor Lowe spoke earlier, posts:
- RBA's Lowe giving AUD a boost with his legitimacy question on further easing
- RBA Gove Lowe says global growth has slowed, risk
While I focused on his policy comments the local press here in Australia, the Australian Financial Review, focus on some dissonance Lowe noted:
- "There are investors who think the outlook is sufficiently weak that they expect central banks right around the world to cut interest rates but they are not worried about corporate profits or credit risk."
- "I don't really understand that"
- If you look at equity markets they are very strong but credit spreads are narrow. So to me it's a strange world."
And, more:
- "I think it is quite unlikely that we face another financial crisis,"
- "Liquidity ratios are higher, balance sheets are simplier and less opaque - the financial system looks a lot stronger than a decade ago."
(Simplier? No, I dunno what that means)
