The Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said that he doesn’t expect a rate hike for three years, in a scheduled speech on “Monetary Policy in 2020” at the Australian Business Economists webinar.
Additional quotes
Policy action has reduced borrowing costs
Bond buying program means A$ is lower than it otherwise would be
Program needed as Australian 10-year yields were higher than in peer nations
Must be careful not to remove policy stimulus too early
Australian government debt is very manageable
Federal government and state debt is “absolutely sustainable”
Reiterates board does not expect to increase the cash rate for at least 3 years
Materially lower jobless rate needed to lift wages, inflation
Banks have strong balance sheets to support economy into recovery
Expects average mortgage interest rate paid by households to decline further
News about vaccines should help bolster confidence
Likely some time before vaccines widely available and distributed
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