RBA Deputy Governor Guy Debelle reiterated the central bank’s rhetorics that the “next move in monetary policy is more likely up than down, though it is some way off.” But he also emphasized that there is “still scope for further reductions in the policy rate”, referring monetary capacity.

Debelle also said RBA has learned from the experience of other central banks using other tools of monetary policy. And “QE is a policy option in Australia, should it be required.” He added that “there are less government bonds here, which may make QE more effective.”

Besides, he added “floating exchange rate matters and remains an important shock absorber for the Australian economy.”

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He full speech here.

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