RBA’s Kent: Expansion of balance sheet adding monetary stimulus

Ross J Burland FXStreet

RBA's Kent has stated that the expansion of balance sheet adding monetary stimulus and that easing in financial conditions has been greater than during GFC.

Additional comments

A mix of longer-dated repos, govt bonds has led to broader, more durable easing.

Need for policy support to be provided for some time given the economic outlook, high unemployment.

Want to see labour market conditions consistent with inflation in 2-3% target range.

Will not increase cash rate until actual inflation is sustainably in target range.

Expects banks will draw down extra funding as ‘it will be profitable to do so’.

Says there is some room to cut the cash rate further.

RBA Kent's comments finally send AUD/USD through support

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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