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22 Apr 2014
Australian government in discomfort with RBA neutral stance
FXStreet (Bali) - According to the Financial Review website, the Australian government has recently expressed its concern to the Reserve Bank of Australia with regards to their shift to 'neutral' in policy stance.
As AFR notes: "The Reserve Bank of Australia’s move to a “neutral bias” on monetary policy has angered the Abbott government, which believes any upward pressure on the dollar will make it harder to manage the economy."
According to headlines crossing the wires, "the Australian Treasurer Joe Hockey is said to have to personally made the government’s displeasure known to the RBA as the dollar’s rise will exacerbate budget challenges."
AFR received information from senior government sources which suggested that the government is more concerned over the value of the Australian Dollar than the rising house prices, adding that the current neutral bias by the RBA was the main factor leading to the currency appreciation.
As AFR notes: "The Reserve Bank of Australia’s move to a “neutral bias” on monetary policy has angered the Abbott government, which believes any upward pressure on the dollar will make it harder to manage the economy."
According to headlines crossing the wires, "the Australian Treasurer Joe Hockey is said to have to personally made the government’s displeasure known to the RBA as the dollar’s rise will exacerbate budget challenges."
AFR received information from senior government sources which suggested that the government is more concerned over the value of the Australian Dollar than the rising house prices, adding that the current neutral bias by the RBA was the main factor leading to the currency appreciation.