- Glenn Stevens, Governor of Reserve Bank of Australia
Reserve Bank of Australia Governor Glenn Stevens delivered another optimistic assessment of the Australian economy, highlighting it could weather a serious China's slowdown. Stevens' statement appeared to lower the chances of the central bank cutting the official cash rate further from its current all-time low level of 2%. Moreover, the central bank's Governor even said that a hard landing for the world's second largest economy, where annual growth would decline below 7%, may not be enough to trigger another rate cut. Australia slashed rates twice this year to a record-low 2% to underpin investment and consumption as economic growth remains below its long-term average of more than 3%.
Stevens reiterated his view that the lower Australian Dollar is having a bigger effect on the nation's economy now. Nevertheless, growth remains slower than hoped for, but Stevens played down weak Australian economic growth figures for the June quarter, which showed GDP rose just 0.2%. RBA Governor said that while the second quarter exaggerated strength, the June quarter exaggerated weakness in nation's economic output. The Aussie has lost 25% against the US Dollar over the last two years, and around 18% on a trade-weighted basis.
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