Reserve Bank of Australia Governor Guy Debelle has stated that the current conditions do not warrant a negative interest rate. His remarks were as follows:
The top priority is to accelerate economic growth.
CPI may be negative in the second quarter.
He expects the economy to recover in the coming period.
There are options for monetary policy other than negative interest rates.
Liquidity operations are working as intended.
The Australian economy has recovered in June after a weak quarter.
Declines in GDP and hours of work were still historically significant.
Uncertainty over the future continues.
The RBA is ready to take all necessary measures, as circumstances warrant.
Inflation is likely to stabilize below the target range in the short to medium term.