RBA Assistant Governor Christopher Kent is due to speak at the Leading Age Service Australia National Congress in Adelaide on Monday where subtle clues may be derived on monetary policy the RBA may be looking at. On Tuesday the RBA will release minutes of its previous meeting which should reiterate its stance on a slowly recovering property market in the country, with a firm view that the currency is still heading towards a suitable (lower) value that will be sustainable for economic recovery.
China’s central bank, the People’s Bank of China, plans an injection of 200 billion Yuan to stimulate economic growth. This comes after the central bank provided 500 billion yuan of liquidity to China’s five biggest banks last month in a bid to counter the deceleration in the economy. Central bank Governor Zhou Xiaochuan said that the PBOC will stick to prudent monetary policy to ensure reasonable growth in money and credit. China will conduct required liquidity operations and push forward with market-based interest-rate reforms, and is not keen to perform broad-based stimulus like what its European counterparts are contemplating. This could greatly aid Australia as one of its main trading partners except of course if the Australian dollar depreciates at the same time.