Some of you gotto THANK me, if the exchange exceeds 1.5 to SGD. This shows my prediction is right!
To SG : I'll be returning to your arms (with my bags of gold) in 10yrs time.. Who wants to retire in Australia anyway... hehehe..
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RBA sees higher $A than past decades
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UPDATE: Enda Curran | October 19, 2009
Article from: Dow Jones Newswires
THE Reserve Bank of Australia says it expects a higher average exchange rate than previous decades.
"We have become a country with a higher return on capital and a lot of investment, so that means we will have a higher average exchange rate than we have had over the past couple of decades," said Phil Lowe, the central bank’s assistant governor, economics.
He told an investment conference in Sydney that the higher exchange rate would help the resource transfer within the economy.
"Flexibility in the economy is incredibly important," he said.
KEY CURRENCY TABLES
Mr Lowe said the Australian economy had turned out to be quite a lot stronger than thought and the RBA's policy board was in the process of normalising policy.
He said the risks that existed in the first quarter of this year were quite different to the current risks to the economy.
"As those risks and uncertainties diminish it's entirely appropriate that we go back to a more normal setting of monetary policy," he said.
"The setting that was needed in March is not the setting needed in October and that is the process underway now."
Mr Lowe said inflation in Australia was slowing as evidenced by slower wage growth in the labour market.
"We are seeing inflation come down but there is clearly a lag between the slowing of the economy, the slowing of wage growth and inflation," he said.
"Our objective is to make sure, over time, the rate of inflation in Australia averages some number between 2 per cent and 3 per cent. We have done that and will continue to do that."
Mr Lowe expects a higher current account deficit due in part to increased investment in the mining sector.
"We will see a change of structure of the current account deficit to more foreign direct investments from large mining companies and less reliance on bank debt, that's a healthy change,” he said.
On the housing market, Mr Lowe said a major challenge for policy makers was to ensure a sufficient supply of housing.
"With the population growing at the present rate, we need to build more houses than we are currently building,” he said.
To SG : I'll be returning to your arms (with my bags of gold) in 10yrs time.. Who wants to retire in Australia anyway... hehehe..
----------------------------------------------------------
RBA sees higher $A than past decades
* Font Size: Decrease Increase
* Print Page: Print
UPDATE: Enda Curran | October 19, 2009
Article from: Dow Jones Newswires
THE Reserve Bank of Australia says it expects a higher average exchange rate than previous decades.
"We have become a country with a higher return on capital and a lot of investment, so that means we will have a higher average exchange rate than we have had over the past couple of decades," said Phil Lowe, the central bank’s assistant governor, economics.
He told an investment conference in Sydney that the higher exchange rate would help the resource transfer within the economy.
"Flexibility in the economy is incredibly important," he said.
KEY CURRENCY TABLES
Mr Lowe said the Australian economy had turned out to be quite a lot stronger than thought and the RBA's policy board was in the process of normalising policy.
He said the risks that existed in the first quarter of this year were quite different to the current risks to the economy.
"As those risks and uncertainties diminish it's entirely appropriate that we go back to a more normal setting of monetary policy," he said.
"The setting that was needed in March is not the setting needed in October and that is the process underway now."
Mr Lowe said inflation in Australia was slowing as evidenced by slower wage growth in the labour market.
"We are seeing inflation come down but there is clearly a lag between the slowing of the economy, the slowing of wage growth and inflation," he said.
"Our objective is to make sure, over time, the rate of inflation in Australia averages some number between 2 per cent and 3 per cent. We have done that and will continue to do that."
Mr Lowe expects a higher current account deficit due in part to increased investment in the mining sector.
"We will see a change of structure of the current account deficit to more foreign direct investments from large mining companies and less reliance on bank debt, that's a healthy change,” he said.
On the housing market, Mr Lowe said a major challenge for policy makers was to ensure a sufficient supply of housing.
"With the population growing at the present rate, we need to build more houses than we are currently building,” he said.
