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.
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.
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