Reserve Bank chief Glenn Stevens is trying to use his power to lower the Australian dollar in place of further rate cuts, say economists.
A statement released by Mr Stevens – as the RBA kept the rate on hold for another month – underlined the central bank’s desire for a weaker currency, they said.
“The Australian dollar, while below its level earlier in the year, is still uncomfortably high,” Mr Stevens said.
“A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy.”
The Australian dollar slipped from about US95c to US94.7c when the statement was published.
Source: Herald Sun
Advertisement
Reserve Bank trying to talk dollar down
Reserve Bank chief Glenn Stevens is trying to use his power to lower the Australian dollar in place of further rate cuts, say economists
