RBA told intervention necessary to dampen AUD

The Reserve Bank of Australia (RBA) is being told by central bankers elsewhere that if the RBA truly wants to dampen the value of the Australian dollar then it should consider heavy intervention measures, according to The Australian Financial Review.

Officials from Asia's central banks, and possibly officials from the Reserve Bank of England, European Central Bank and US Federal Reserve are meeting in Sydney this week, hosted by RBA assistant governor Guy Debelle.

Some foreign central bank officials are reportedly encouraging the RBA to consider large-scale intervention to drive down the value of the dollar, rather than follow the trend of cutting interest rates to near-zero.

That view is not foreign to the RBA. The central bank's deputy governor, Philip Lowe, recently said that “very low interest rates in many other economies should not be seen as a good thing or something to aspire to”, according to the

AFR.

The Australian dollar broke through $US1.05 for the first time since September earlier this week, despite a