A major bank boss has warned against RBA
CEO Mike Smith has told The Australian Financial Review that the falling Australian dollar should stay the Reserve Bank's hand. Smith said the Bank should wait to see the effects of the lower Aussie dollar filter through the economy.
“If I was the central bank I would wait and see how this plays out because if the currency can take most of the shock, it’s a much better way to deal with it,” Smith told The AFR.
Smith said the RBA
would still retain the option of using monetary policy later in the year.
boss' statements stand in contrast to the bank's predictions. The bank has previously predicted the RBA
will cut the cash rate twice in the first half of 2015.