No need for rate cuts: Mike Smith

ANZ CEO Mike Smith has urged the Reserve Bank of Australia to hold fire on interest rates and expressed confidence in the health of the Australian economy.

"I’m still not too worried by the Australian economy."
Mike Smith, Chief Executive Officer ANZ

Speaking exclusively to BlueNotes on video, Smith said while plunging commodity prices were having an effect, the declining Australian dollar was mitigating some of the damage.

“I think if I was the central bank I would wait and see how this plays out because if the currency can take most of the shock it’s a much better way to deal with it,” he said. “And of course it does leave you the option of monetary policy later.”

“I still see Australia as relatively well placed. I’m still not too worried by the Australian economy.”