Speech Summary Global Influences on Domestic Monetary Policy

Photograph of Guy Debelle

Committee for Economic Development of Australia (CEDA) Mid-Year Economic Update
Adelaide –

This speech discusses global influences on domestic monetary policy. It highlights four common global factors that have led to expansionary monetary policy settings in advanced economies around the world: the subdued recovery from the global financial crisis and the low levels of corporate investment, wage growth and inflation. The speech discusses neutral interest rates, that is, the rate at which policy rates would settle in the medium term when the goals of monetary policy are being achieved. It highlights that neutral policy rates are lower around the world and this is contributing to lower policy rates in many advanced economies, including Australia. The speech also covers monetary policy settings in other economies, and the effect they have on Australia's monetary policy.

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