British Pound (GBP)

Asset Class:

Currency

   Trade now with Barclays Stockbrokers   Trade now with Barclays   Sponsored by Barclays Stockbrokers

GBP:EUR
1.1293

Change Today: -0.0010

GBP:USD
1.3250

Change Today: +0.0012

GBP:JPY
148.7456

Change Today: +0.1074

No case for interest rate hikes in Australia, RBA's Harper says

By Alexander Bueso

Date: Wednesday 13 Sep 2017

LONDON (ShareCast) - (ShareCast News) - Excess capacity in the Australian economy means that interest rate hikes are not justified and there is nothing the Reserve Bank can do to stymie the drop in the US dollar, one of the country's top rate-setters said.
In an interview with Bloomberg, Reserve Bank of Australia board member Ian Harper pointed to unchanged measures of so-called underemployment and slow wage growth to back up his case for the former.

So despite what he described as "terrific" growth in full-time employment, Harper added: "So long as that is the case, why would anyone be suggesting tightening monetary policy when the economy is operating below potential: I mean hello?"

He also said there was little RBA could do to brake strength in the Aussie's value because it was being driven by weakness in the Greenback.

"If you're propsoing that there's some council of intervention here, what are you going to do, try and influence the US dollar? Give me break," he said.

Harper, one of six independent directors on the committee, also appeared to indicate he was satisfied with the effect of recent curbs on home lending by investors in shunting capital back towards potential home owners.

Email this article to a friend

or share it with one of these popular networks:


 

Market Data

Currency Rate Chg
AUD 1.7836 -0.0004
CAD 1.7383 -0.0006
CHF 1.3186 -0.0009
CNY 8.8531 -0.0016
DKK 8.4196 -0.0046
EUR 1.1293 -0.0010
HKD 10.3988 +0.0088
INR 90.5803 -0.1567
JPY 148.7456 +0.1074
NOK 10.7231 -0.0016
NZD 1.9407 -0.0119
SEK 11.6649 -0.0141
SGD 1.8024 -0.0007
THB 44.0679 +0.0264
TWD 40.4481 -0.0126
USD 1.3250 +0.0012
ZAR 17.5439 +0.0417

Top of Page