- Exchange rate is offering less assistance than it would normally be expected in achieving balanced growth in the economy
- “Australia’s terms of trade has continued to decline and some key commodity prices for Australia, most notably the iron ore price, have declined considerably … On that basis, the Australian dollar is still higher than most conventional estimates of fundamentals would indicate, notwithstanding its recent decline“
- The main development in FX markets in recent months was the appreciation of the U.S. dollar
- “We are in an unusual environment where monetary policy settings in the four major economic regions – the U.S., China, Europe and Japan – are moving in divergent directions”
- Balance sheets of major central banks are at an unprecedented size…. creates a complicated environment for setting monetary policy in other parts of the world, including here in Australia”