Address by Mr Glenn Stevens, Governor of the Reserve Bank of Australia, to the Official Monetary and Financial Institutions Forum (OMFIF) City Lecture, London, 30 June 2015

by C H

In the end, of course, central bank policies can’t restore the situation ex ante. Whatever adjustments economies needed to make, and may still need to make, in respect of financial and/or economic structure from their pre-crisis situation, cannot be avoided.
Those adjustments are ongoing. I am optimistic enough to think that, in due course, they will have advanced sufficiently such that stronger growth, accompanied by less extreme central bank policy settings, could be anticipated. Needless to say, the more other policies, outside of the central bank’s ambit, can contribute to that, the better. That was the point of the pro- growth commitments the G20 Leaders made in Brisbane in November 2014.
It may be quite some time, though, before the central banking modus operandi that we had prior to the crisis is seen again.