Stevens “laments” pessimism, unlikely to cut rates

CBA reviewed RBA Governor Glenn Stevens’ recent speech and the Q&A segment which followed at the latest ASIC annual forum and it thinks he may pushing for markets to be less pessimistic about the state of the Australian economy. As part of their daily research notes, CBA described his speech as a “lament” of how economic commentators seem to be “locked into looking for downside risks as an overhang of the GFC.” The bank thinks his speech and his response to questions are not those of a man looking to cut rates. “That [Stevens’ comments] doesn’t sound to us like a man contemplating a surprise rate cut in April to get in ahead of the Budget on May 3”. Stevens had said the local economy was improving and Australia had the capacity to negotiate “whatever lies ahead.”