Glenn Stephens served as Governor of the Reserve Bank of Australia for ten years between 2006 and 2016. He spoke at the annual gas industry conference.
- “When I finished working in central banks, almost seven years ago now, inflation was so low it was difficult to raise it.”
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“Who would have thought that now we are in a world so high, and I think it would be difficult for him to go down.”
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“I could be wrong, but if that’s the case, then I think we’ve also moved from a world where interest rates have been low for a long (er) time… to a world where they are going to be raised for some time.” Necessarily much higher than now, but I think a return to the very low prices we’ve seen for a while is unlikely. “
Stephens doubts that current RBA Governor Lowe can bring down inflation without triggering a recession:
- It is noteworthy that since World War II, the most significant decline in inflation in the United States has occurred during or after a recession.
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“The legendary soft landing isn’t completely unknown, but it’s not very common.”
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“And those results tend to be related to more favorable developments on the supply side of economies than we’re seeing at the moment.”
Glenn Stevens (in the hat).
cross info local media Here in Australia.