The RBA’s Third Phase Of Tightening, And What Happens Next...

The Reserve Bank of Australia’s (RBA) Assistant Governor (Financial Markets), Christopher Kent, gave an Address to Bloomberg on Wednesday where he expressed why the RBA is reluctant to lift the official cash rate further. https://www.rba.gov.au/speeches/2023/sp-ag-2023-10-11.html The RBA is in its “third phase” of monetary policy tightening as it assesses the impact of interest-rate rises to date, he said. The current stage is “an opportunity to see how the economy and how the data is evolving,’’ he said, reiterating that further rate increases may still be needed. Much of the presentation concerned the lags as monetary policy takes effect. Basically, the […]