Monday 29th of April 2024
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regarding henry .....

regarding henry .....

Reserve Bank of Australia (RBA) governor Glenn Stevens says he supports the Government's move to guarantee unlimited bank deposits. 

A newspaper report today claims the RBA is concerned the Government's recent decision to provide an unlimited guarantee of all bank deposits is distorting the market.

However in a speech today Mr Stevens described the guarantee of deposits and wholesale funding as sensible. 

'This will ensure that Australian institutions, some of which are among the highest-rated of the world's banks, are able to retain adequate access to term funding in an environment where banks of other countries are able, in effect, to use the rating of their governments when borrowing,' Mr Stevens said. 

'Steps in these directions, in the context of what other countries were doing, were sensible and the RBA supported them.' 

RBA Chief Pledges Support For Deposit Guarantee 

Interview With Julie Bishop

apology on interest rates...

A FEDERAL Liberal MP has apologised unreservedly for comments he made about Reserve Bank governor Glenn Stevens.

West Australian Don Randall earlier today accused Mr Stevens of being "caught out" on interest rates.

Interest rate cuts by major banks were not the result of the Rudd Government's decision to guarantee bank deposits, he said.

"They are having to bring down their rates as a result of the world conditions and the fact that Glenn Stevens has been caught out," he told reporters.

"He put up the interest rates before the election, during the election when the rest of the world were bringing down interest rates.

"And now in a way to cover the Government's inept behaviour, they are bringing down interest rates at probably the most rapid rate Australia has ever seen.

"It really is chaotic, shambolic."

Later, Government Leader of the House, Anthony Albanese, tabled in parliament a written apology from Mr Randall withdrawing his comments.