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RBA governor's thoughts on economy

RBA governor Glenn Stevens has been asked about all things economic in his semi-annual appearance before a parliamentary committee.

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Source: AAP


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RESERVE BANK GOVERNOR GLENN STEVENS' TAKE ON THE ECONOMY:

INTEREST RATES

"It's, I think, pretty unlikely we're going to be raising rates any time soon."

"I don't really see much of a case for independent increases in lending rates based on funding costs as they've evolved just lately."

GLOBAL MARKET VOLATILITY

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"I think what we're seeing in global markets at present is markets are dropping their bundle."

"My instinct at the moment is I think some of the doom and gloom is overdone but it remains to be seen."

COMMENTARY ABOUT POSSIBILITY OF GLOBAL RECESSION

"I think that might be a bit pessimistic really but in saying that I acknowledge that recessions are rarely very accurately forecast."

HOUSING IN SYDNEY AND MELBOURNE

"For the property market in the two most ebullient cities to take a bit of a breather for a while, I think that's probably welcome."

"Obviously we don't want a crash, but I think the pace of growth that we did have, you'd have to really worry if that continued on and on."

TAX

"We're not heading to hell any time soon but there's an issue here over the medium term that still, it seems to me, we're not quite having the conversation in the country about."

"Sooner or later we do have to have the conversation about funding the very good things we all want and I don't think we've quite had it yet."


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