RBA governor Glenn Stevens, Treasury secretary John Fraser and Australian Prudential Regulation Authority (APRA) chairman Wayne Byers have briefed the parties under the caretaker conventions of the election campaign. The nation's most senior financial officials have briefed both major parties on the consequences of a British exit from the European Union as Labor and the Coalition made a pitch to voters to stick with them in the event of an exit.
'They are actually going back to a more old-style way of functioning', he said. The economic impact of a Brexit result on Australia was not obvious, he said, but market volatility was a global phenomenon. Andrew Mearesĭr Debelle told an Adelaide University function in Adelaide last night that the Reserve Bank would closely monitor the market fallout that would occur in Australian trading time today. Prime Minister Malcolm Turnbull claimed only the Coalition would have the wherewithal to steer the nation during what would be a global economic shock should Britons vote to leave the European Union. "Really the question is how much liquidity there is going to be in the market, and that's not clear." Whether they move … dramatically and whether liquidity dries up that's what remains to be seen," he said.
If there was a surprise 'leave' vote, he said said liquidity would be the key question for price movements, such as in foreign exchange markets. Reserve Bank of Australia financial markets chief Guy Debelle warned that financial markets could face a liquidity squeeze among the "stuff" that could follow any surprise vote in favour of Brexit on Friday.ĭr Debelle said financial market pricing was closer to the betting odds, which more favour a 'remain' vote than the public opinion polls.