This is not what a central bank governor should say as the world falls apart.
Inevitably, there will be a period of uncertainty and adjustment as countries respond to the ongoing tariff announcements by the United States administration. It will take some time to see how all of this plays out and the added unpredictability means we need to be patient as we work through how all of this could affect demand and supply globally.
Financial market and economic volatility can be expected as this process unfolds. But there are two points I want to make on this. First, we’re not currently seeing the same degree of impact as previous market events like in 2008 for example. And second, the Australian financial system is strong and well placed to absorb shocks from abroad.
