The Reserve Bank of Australia's Assistant Governor, Financial Markets Christopher Kent, is speaking at the KangaNews Debt Capital Markets Summit.
He said that Australia's central bank sees good prospects for growth and an eventual increase in wages and prices, though inflation is unlikely to be sustainably within its target range until 2024 at the earliest, as reported by Reuters.
key notes
- Says good prospects for growth, eventual increase in wages and inflation;
- Policy measures have delivered, will continue to deliver, very stimulatory monetary conditions;
- Stimulus to remain until economy returns to full employment, inflation consistent with target;
- Inflation unlikely to be sustainably within target range of 2−3% until 2024 at the earliest;
- Says substantial fall in australian banks’ funding costs has been passed through to borrowers;
- Rise in global bond yields this year was not a cause for concern;
- Global inflation expectations have risen, but only to levels of a few years ago;
- Expectations do not point to inflation rising above central bank targets in sustainable way.
AUD was unchanged on the comments as forex volatility remains at a yearly low while traders await more clarity from the central banks and the outcome of US inflation data.
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