Stevens Says RBA ‘Open Minded’ on FX Intervention

Reserve Bank of Australia Governor Glenn Stevens said that while the central bank has been unconvinced about the effectiveness of trying to drive down the Aussie, he remains “open-minded” on currency intervention.

“In this episode so far, the bank has not been convinced that large-scale intervention clearly passed the test of effectiveness versus cost,” Stevens said late yesterday in a speech to a forum of market economists to mark the approaching 30th anniversary of the free float of the exchange rate. “But that doesn’t mean we will always eschew intervention. In fact we remain open-minded on the issue.”