The palpable fear that Europe was on the edge of some sort of event has lessened over summer #rba #stevenshearing #auspol
“Perhaps a little surprisingly” our Nov and Dec rate cuts were initially fully reflected in retail rates #rba #stevenshearing #ausecon
Words to the effect: The behaviour of the banks does not harm the operation of monetary policy
#rba #stevenshearing #ausecon
“Very few sectors are experiencing average performance” #rba #stevenshearing #ausecon
Stevens being asked the banks’ interest rate question: #rba #stevenshearing #ausecon
Even after the bnaks made their recent adjustments, rates are roughly where we would want them to be. #rba #stevenshearing #ausecon
STEVENS: “I had anticipated banks would not pass on end of year rate cuts.” #rba #stevenshearing #ausecon
STEVENS: If I had to choose between profitable and unprofitable banks I would choose the later. #rba #stevenshearing #ausecon
STEVENS: Over last 20 years banks profits roughly in line with listed companies. #rba #stevenshearing #ausecon
STEVENS: If it is really really profitable here, other players will want to find some way of getting their hands on those profits. #rba #stevenshearing #ausecon
STEVENS: Our 10 per cent saving rate is likley to remain five years into the future. It’s big, but not too big. #rba #stevenshearing #ausecon
STEVENS: 10 per cent shavings rate is the new normal. #rba #stevenshearing #ausecon
STEVENS: Retail was going to suffer anyway - changed shopping pattens. It’s not all the high savings rate. #rba #stevenshearing #ausecon
STEVENS: We can’t fight the global phenomenon that is pushing up the exchange rate and changing our economic structure #rba #stevenshearing #ausecon
STEVENS: I doubt any type of policy can fight what’s happening. #rba #stevenshearing #ausecon
STEVENS: We haven’t intervened to hold dollar down. I am not saying we never would, but we don’t foreshadow it. #rba #stevenshearing #ausecon
STEVENS: Does what’s happening to currency make sense. The most recent strength when commodity prices down does seem odd. #rba #stevenshearing #ausecon
STEVENS: I am not really convinced foreign investors have taken a negative view of Australia’s sovereign risk (when asked) #rba #stevenshearing #ausecon
STEVENS: Mr Argus and others have their own views. But there is not a serious perception of sov risk. High appetites for Aust gov debt. #rba #stevenshearing #ausecon
STEVENS: If people say this in the newspaper one can’t deny that that’s their view. #rba #stevenshearing #ausecon
STEVENS: Playing a dead bat on Coalition questions re productivity, Fair Work Act #rba #stevenshearing #ausecon
STEVENS: Overall wages are okay, we don’t really want them to accelerate from here. #rba #stevenshearing #ausecon
STEVENS: We expect a small lift in productivity, following structural adjustment #rba #stevenshearing #ausecon
STEVENS. Bank rates. Banks want to maintain profits, any business does. #rba #stevenshearing #ausecon
STEVENS: “When people say bank costs have risen, that is true. Every business tries to recover costs. #rba #stevenshearing #ausecon
GUY DEBELLE: Australian banks pay about the same as comparable banks overseas for money. #rba #stevenshearing #ausecon
GUY DEBELLE: But Australian corporates can borrow cheaper than Australian banks, even though lesser credit rated. #rba #stevenshearing #ausecon
PHIL LOWE: Our central forecast has unemployment drifting up to around 5.5%, then drifting down. #rba #stevenshearing #ausecon
PHIL LOWE: Our central forecast has unemployment drifting up to around 5.5%, then drifting down. #rba #stevenshearing #ausecon
PHIL LOWE: It wasn’t long ago IMF talking about ‘1930s moment’ No wonder businesses reticent to hire. #rba #stevenshearing #ausecon
STEVENS: No probelm with @SwannyDPM not attending G20 in Mexico this weekend #rba #stevenshearing #ausecon
STEVENS: We are not what Mervyn King called “inflation nutters” in that we give no account to economic conditions. #rba #stevenshearing #ausecon
STEVENS: When we got to 4% unemployment it was pretty clear the economy was overheating. #rba #stevenshearing #ausecon
STEVENS: Workers are commuting to the West, even from NZ and Indonesia. #rba #stevenshearing #ausecon
GUY DEBELLE: Spreads vs levels.. #rba #stevenshearing #ausecon
STEVENS: We will publish update on banks funding costs in our Bulletin in March. #rba #stevenshearing #ausecon
STEVENS: Re Securency. I unequivocally reject suggests of a cover up. #rba #stevenshearing #ausecon
STEVENS: Securency. The allegations published in the press were “quite surprising”. #rba #stevenshearing #ausecon
STEVENS: There seems to be a view the banks have to do whatever the RBA DOES, THEY DO NOT. #rba #stevenshearing #ausecon
STEVENS: Bank profitability is within the pack. Some industries earn more, some less. #rba #stevenshearing #ausecon
STEVENS: Some years things are tough for banks (Subtext: It’s not a licence to print money.) #rba #stevenshearing #ausecon
STEVENS: I personally suspect smaller institutions do better out of the deposit gurantee than large ones. #rba #stevenshearing #ausecon
PHIL LOWE: In time even businesses that are cautious in their behaviour will want to hire again. #rba #stevenshearing #ausecon
PHIL LOWE: Banks have got used to double digit credit growth, and that’s not going to continue. #rba #stevenshearing #ausecon
PHIL LOWE: The real estate industry also has got used to double digit credit growth, it won’t continue. #rba #stevenshearing #ausecon
STEVENS: Merchant fees have come down. #rba #stevenshearing #ausecon
STEVENS: I am not keen for RBA to be jawboning banks to accept a sub-market rate of return. #rba #stevenshearing #ausecon
STEVENS: (Words to the effect) If we did it banks we might be asked to dictate to other businesses the prices they could charge. #rba #stevenshearing #ausecon
STEVENS: There is a gender imbalance in the study of economics, an interesting phenomenon. #rba #stevenshearing #ausecon
STEVENS: I think we are still making the calls as to where monetary policy should be. There is just “a small bit of slippage in the transmission mechanism”. #rba #stevenshearing #ausecon
STEVENS corrects one of his answers re Securency. #rba #stevenshearing #ausecon
Here's the complete transcript. Thank you Hansard!
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