BREAKING: RBA's Debelle Says Currency Weakened On Monetary Policy Easing Expectations

Debelle said there were increased market expectations of a further decline in the cash rate, exchange rate, and the bond yield target since mid-September. Between then and early November, the currency depreciated around 5% against the U.S. dollar.

Early this month, RBA had reduced its key cash rate by 15 basis points to a record low of 0.10%. Also, the bank raised its quantitative easing measures.

He noted that the monetary easing measures have materially lowered the structure of interest rates in the Australian financial system and lowered the borrowing costs for households, businesses and the government.

While the news about vaccines should help bolster that confidence, the recovery will be uneven, the banker said. It is likely to be some time before the vaccines will be widely available and distributed.