PERTH: The Australian dollar weakened against the other major currencies in the Asian session on Wednesday following a speech by Reserve Bank of Australia Governor Glenn Stevens.
Speaking at the Economic Society of Australia in Brisbane, Stevens said that the Australian dollar is expected to depreciate further. He also noted that the RBA is open to the possibility of further easing in order to maintain growth.
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“We remain open to the possibility of further policy easing, if that is, on balance, beneficial for sustainable growth,” he said.
“Inflation is likely to remain low. Growth in labour costs is very low and some of the forces that were pushing up certain administered prices have started to reverse. So even if the exchange rate were to fall further, which in my view it needs to, we seem unlikely to have a problem with excessive inflation, ” he added.
