RBA’s Stevens: Chances of negative rates in Australia are low

More comments flowing in from RBA Governor Stevens, as he responds to the Q & A session underway, following his prepared speech.

Key Quotes:

Favours the current 2 to 3% inflation target band

Cautions on lowering the target

Globally difficult to implement negative rates without hurting banks' earnings

Chances of negative rates in Australia are low

Expected mortgage rates would not fall by full 25bps last week

Very unlikely Australia would be so desperate to consider helicopter money

Business hasn't responded to low rates with investment

Monetary policy doesn't really affect business investment