RTRS runs comments from RBA Deputy Governor.....>

RBA: RTRS runs comments from RBA Deputy Governor Debelle's Q&A as he suggests

that the floor for rates in Australia is likely 0.0-0.5%.

- Remember that 2 further cuts are already baked into rates markets & therefore

the RBA's economic projections.

- Debelle also notes that he hopes that the RBA never has to get down to the

level of rates seen in some other countries.

- This could suggest that the RBA favours QE to NIRP, if the need for

extraordinary monetary policy arises. This shouldn't come as a shock given the

recent commentary from RBA Governor Lowe & the release of the minutes from the

RBA's August MonPol decision. Although the Bank has suggested that

unconventional MonPol in Australia is an unlikely outcome at present, while

noting that a package of measures tends to be more effective than any single

unorthodox measure in isolation.

- Debelle also noted that the housing market is showing signs of stabilisation.