WP.. Aud and Nzd – Quick round up. Glenn Stevens advised that Australia’s potential growth may be a bit lower than previously thought – “A key question worth asking is: how do we generate more growth? Not temporary, flash-in-the-pan growth, but sustainable growth. How do we craft a credible, confidence-enhancing, narrative about growth?” http://www.rba.gov.au/speeches/2015/sp-gov-2015-08-26.html. Seperately in an “informed” piece from RBA Watcher from MNI Rodriguez the comment was made that prospects of a delay in the first Federal Reserve rate hike and concerns over slowing Chinese growth have increased the Reserve Bank of Australia’s preparedness to lower the cash rate further. Next week too early to cut rates but RBA will watch decision of Sept FOMC carefully. Already, the RBA thinks developments in the past week have increased the downside risks for the Australian economy. In the NZ Bill English made the following comments – New Zealand faces a greater risk of tipping into recession if China’s slowing economy has a hard landing, which could force interest rate cuts and increased government spending. RBNZ also announced changes to its MPC and OCR meetings for 2016-2017 – http://www.rbnz.govt.nz/news/2015/mps-dates-2016-17.html
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