RBA’s Debelle: Aussie rates do not have to rise in line with global peers

Comments from RBA’s Deputy Governor Guy Debelle crossing the wires –

• No automatic reason to follow rate hikes abroad
• Says global pressures mean Australian rates lower than they would otherwise be
• Says cash rate set at level appropriate for domestic policy objectives

On Neutral Rates

• Says neutral policy rate likely to remain lower than in the past
• Estimates neutral rate has fallen by around 150 bps since 2007
• Says risk aversion since gfc contributed to fall in neutral rate, may reverse in time
• "No significance" should be read into fact neutral rate was discussed at july policy meeting

On AUD

• Central bank stimulus abroad has put upward pressure on a$
• Says a rising AUD lessens benefits of faster global growth for Australia