20 Mar 2015
RBA Stevens: Firms and households less optimistic, struggling with miming boom trnasition
FXStreet (Bali) - Reserve Bank of Australia Governor Stevens is crossing the wires, speaking in front of the American Chamber of Commerce in Australia, noting that the transition from mining boom is not as seamless as he would like, with business and consumer confidence getting less optimistic.
Stevens added that the depreciation in the Australian Dollar is supportive for the economy, together with the pick up in growth by the United States and depressed oil prices.
"It is a major transition. We can hope to assist it, and the Reserve Bank is doing that, and will continue to lend what support it can," Stevens told the American Chamber of Commerce, via Reuters.
"But we have always said we cannot hope to fine-tune this transition, however much we may wish otherwise."
With regards to interest rate, Stevens reiterated that the bank "has talked about lowering them further."
Reuters adds, quoting Stevens that, "even if we have a period of sub-average growth in the process, we will have done far, far better than in any previous mining boom of this kind, let alone one of this magnitude."
Stevens added that the depreciation in the Australian Dollar is supportive for the economy, together with the pick up in growth by the United States and depressed oil prices.
"It is a major transition. We can hope to assist it, and the Reserve Bank is doing that, and will continue to lend what support it can," Stevens told the American Chamber of Commerce, via Reuters.
"But we have always said we cannot hope to fine-tune this transition, however much we may wish otherwise."
With regards to interest rate, Stevens reiterated that the bank "has talked about lowering them further."
Reuters adds, quoting Stevens that, "even if we have a period of sub-average growth in the process, we will have done far, far better than in any previous mining boom of this kind, let alone one of this magnitude."