Australia dollar overvalued as rebalancing act takes time
HOBART, July 3 (Reuters) Australia economic rebalancing away from the https://www.canadagooseoutleta.com canada goose clearance sale mining boom is still in its early stages, a top central banker said on Thursday, while canada goose online shop cautioning Canada Goose online investors canada goose uk shop they were underestimating the risk of sharp fall in the local dollar. cent canada goose coats on sale to $0.9380.
Investors also took Stevens comments canada goose coats as reinforcing the outlook for rates staying at record lows, and perhaps even nudging open the door for another cut if needed.
Governor has delivered his clearest statement yet that super low interest rates are Canada Goose Jackets likely to be part of the economic landscape over canada goose factory sale the medium term, said Savanth Sebastian, an economist cheap Canada Goose at CommSec.
Markets now put the chance of a cut in the 2.5 percent cash rate by year end at around 50 50, a shift that was encouraged by a disappointing reading on retail sales.
The Australian Bureau of Statistics reported sales fell 0.5 percent in May, the biggest drop in a year and confounding forecasts of buy canada goose jacket cheap a steady outcome.
Speaking in Canada Goose Online Hobart, Stevens noted encouraging signs that low rates were working to support consumer demand, home building, employment uk canada goose outlet and non mining investment.
these signs remain early ones, said Stevens. is quite some way to go yet before the episode is completed.
The central Canada Goose Outlet bank has already gone almost 11 months without changing rates and continues to predict that the outlook is for more stability ahead.
Stevens emphasised that the bank had not given any thought to when it might raise rates and that while policy was very accommodative, Canada Goose Parka it still had on rates given they were still well above zero.
OVERVALUED BY ANY MEASURE One reason for the caution was the historically high level of the Australian dollar, which Stevens said was given falls in prices for the country major commodity exports.
think that investors are underestimating the likelihood of canada goose black friday sale a significant fall in the Australian dollar at some point, said Stevens, while canada goose uk outlet also claiming that the uk canada goose bank was not actively trying to talk the currency lower.
The strong currency has been a thorn in the side of trade exposed industries for months, forcing cost cutting canada goose store and job shedding in some sectors.
On the brighter side, Stevens played down the impact canada goose clearance of the Liberal National government unpopular May budget, arguing it was unlikely to have a Canada Goose Coats On Sale material affect on the economy for the next year or so.
Neither did he sound too concerned about the risk that a canadian goose jacket bubble had formed in the housing market. Mortgage cheap canada goose uk growth had only been moderate so far and there was no evidence banks had loosened lending standards.
An ongoing increase in the supply of housing should help temper prices over time, he noted. Government data out Thursday showed canada goose uk black friday approvals to buy canada goose jacket build new homes surged 9.9 percent in May, the largest gain in eight months and above the most optimistic Canada Goose sale forecast.
the next couple of years saw an unremarkable performance on prices, and construction staying at the higher levels that will clearly canada goose be reached over the coming year, it would be an outcome that would contribute to a balanced growth path for the economy, said Stevens. (Editing by Eric Meijer).