Overnight in New York City, RBA Governor Glenn Stevens delivered a speech called “The World Economy and Australia” to an American Australian Association luncheon hosted by Goldman Sachs. “The RBA has clearly signalled a willingness to lower interest rates further.” “The question of whether interest rates should be reduced has to be on the table.” Of course statements like this were perceived as AUD negative and the currency sold off, but I can’t help but interpret some of the other things he said as being quite hawkish. You never quite know with central bank rhetoric, but some of these statements to me say that there ... (full story)