AUD RBA Assist Gov Kent Speaks
He's responsible for advising Reserve Bank Board members - who decide where to set the nation's key interest rates - on matters relating to economics, and his public engagements are often used to drop subtle clues regarding future policy shifts;
Assistant Governor from Feb 2012;
- History
Expected Impact / Date | Description |
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Jun 25, 2024 | Due to speak at the Australian Banking Association Annual Banking Conference, in Melbourne; |
Apr 1, 2024 | Due to speak at the Bloomberg Australia Briefing, in Sydney. Audience questions expected; |
Oct 10, 2023 | Due to speak the Bloomberg Address, in Sydney. Audience questions expected; |
Jun 19, 2023 | Due to participate in a panel discussion titled "Managing Risk in Volatile Markets" at the ISDA/AFMA Derivatives Forum, in Sydney; |
Mar 19, 2023 | Due to deliver a speech titled "Long and Variable Monetary Policy Lags" at the KangaNews Debt Capital Market Summit, in Sydney; |
Oct 23, 2022 | Due to speak at the Commonwealth Bank Global Markets Conference, in Sydney. Audience questions expected; |
May 22, 2022 | Due to speak about quantitative tightening at the KangaNews Debt Capital Market Summit, in Sydney; |
Feb 21, 2022 | Due to speak at an online event hosted by the Australian Financial Markets Association. Audience questions expected; |
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- AUD RBA Assist Gov Kent Speaks News
- From rba.gov.au|Jun 25, 2024
I thank the Australian Banking Association (ABA) for inviting me to this conference. On the occasion of the ABA’s 70th anniversary, it would be tempting to look back over the history of banking in Australia. Instead, I will focus on current financial conditions, which is of interest to those in the banking industry and indeed to Australians more generally. The tightening in monetary policy over the past two years is underpinning restrictive financial conditions in Australia. This is contributing to slower growth of aggregate demand, thereby helping to bring the level of demand into better balance with supply and lower inflation. While recent economic data have been mixed, they have reinforced the need to remain vigilant to upside risks to inflation. Hence, with regards to the path of interest rates, the Reserve Bank Board is not ruling anything in or out. Financial conditions are particularly restrictive for households, but less so for larger businesses. Higher interest rates work through several channels and their effects will vary across different households and businesses according to their circumstances, including their indebtedness and the shape of their balance sheets more broadly. Monetary policy is restrictive Monetary policy is the key determinant of financial conditions for households and businesses. Since May 2022, the RBA has raised the cash rate target by 425 basis points. We know that many are feeling a painful squeeze on their finances because of higher interest rates. High inflation, though, has also reduced people’s purchasing power. It has adversely affected all households, but especially those on lower incomes. post: RBA'S KENT: POLICY CONTRIBUTING TO SLOWER GROWTH OF DEMAND, LOWER INFLATION post: RBA Assistant Gov Kent: Range Of Measures Shows Monetary Policy Is Restrictive - Recent Data Reinforced Need To Be Vigilant To Upside Inflation Risks - Hence, Not Ruling Anything In Or Out For Interest Rates - Cash Rate Is Above Our Range Of Estimates Of The Nominal Neutral Rate post: RBA: NEUTRAL RATE AROUND 3.5% IN SPEECH ILLUSTRATION
- From rba.gov.au|Apr 1, 2024
I’d like to start by thanking Bloomberg for hosting this event. Today, I’ll be speaking about the future system for monetary policy implementation – that is, the method by which the Reserve Bank of Australia (RBA) controls the cash rate. Planning for the future system is important given that the unwinding of unconventional monetary policies is leading to a decline in Exchange Settlement (ES) balances – otherwise known as reserves (Graph 1). Reserves held by banks in their ES accounts at the RBA play a central role in policy ...
- From rba.gov.au|Oct 10, 2023
I want to thank Bloomberg for organising this event. It’s great to be back at this venue. Since May 2022, the Reserve Bank has raised the cash rate target by 400 basis points with the goal of bringing inflation back into its target range of 2–3 per cent. Tighter monetary policy is working to slow the growth of demand and bring it into better balance with supply. This is contributing to the decline in inflation. Today I want to show how increases in the Bank’s cash rate target are transmitting through to demand and inflation. The most well-known element is the cash-flow channel, whereby a rise in the cash rate leads to higher interest payments for those who have debt, reducing the income borrowers have to spend on other things, leading to slower growth of demand and ultimately a decline in inflation. The cash-flow channel is felt with immediacy by borrowers with variable-rate debt and then with a lag for those with fixed-rate debt. It is this channel that is being felt most keenly at present, with many indebted households and businesses experiencing a painful squeeze on their finances. While this burden falls on only part of the population, there are other channels of monetary policy that spread across a broader range of people. Indeed, in economies such as the United States where a sizeable share of borrowing – particularly mortgages – is at rates fixed over very long periods, these other channels of monetary policy do most of the heavy lifting. My talk today will focus on how monetary policy moves through the economy in three steps – from the cash rate to a broad range of interest rates, from those rates to economic activity and from post: RBA's Kent Repeats Some Further Tightening Of Policy May Be Required - Policy Lags Mean Some Further Effects Of Past Hikes Still To Be Felt post: RBA'S KENT: EFFECT OF SLOWER DEMAND GROWTH ON INFLATION IS NOW BUILDING post: RBA'S KENT: HEARING IN LIAISON THAT A RANGE OF RETAILERS DISCOUNTING IN THE FACE OF WEAK CONSUMER SPENDING post: RBA'S KENT: MORTGAGE PAYMENTS ARE AT RECORD SHARE OF HOUSEHOLD DISPOSABLE INCOME, WILL RISE FURTHER
- From @financialjuice|Mar 19, 2023
post at 6:42pm: RBA ASSISTANT GOV KENT: WHEN DECIDING ON RATES, THE BOARD WILL CONSIDER FINANCIAL CONDITIONS. post at 6:41pm: Rba assistant gov kent: the global banking system is much stronger than it was ten years ago. post at 6:41pm: RBA ASSISTANT GOV KENT: THE PROBLEMS STEM FROM A FEW INSTITUTIONS THAT WERE POORLY MANAGED.
- From rba.gov.au|Mar 19, 2023
It’s great to be back at the KangaNews Summit. Last year I discussed the Reserve Bank’s move to quantitative tightening (QT). Today I’ll provide a brief update on the unwinding of our unconventional policies before turning to more conventional monetary policy issues, which will be the focus of my presentation. We are currently pursuing passive QT, whereby we allow our holdings of government bonds to roll off as they mature. The next maturity of substance is $13 billion of the April 2023 Australian Government bond. Some central banks have slowed QT by reinvesting some of their maturing bonds; others have done the opposite, pushing QT along by selling bonds well ahead of maturity. While QT will contribute to a moderate decline in our balance sheet over the next few years, the roll-off of the Bank’s Term Funding Facility (TFF) will lead to a sizeable reduction in our balance sheet this year and next (Graph 1). post at 6:05pm: RBA'S KENT: BOARD WILL RESPOND AS NECESSARY TO BRING INFLATION BACK TO TARGET IN A REASONABLE TIME #News #Markets #RBA #INFLATION #capitalhungry post at 6:07pm: RBA's Kent: Likely To Take Longer Than Usual To See The Full Effect Of Higher Interest Rates On Households
- From @sevenloI|Oct 23, 2022
post at 6:56pm: RBA's Kent: Don't Expect Recession, But Narrow Path To Soft Landing
- From rba.gov.au|Oct 23, 2022
I’d like to thank CBA for the opportunity to be here today. Inflation is too high in most economies. This reflects disruptions to supply coupled with strong demand. There has been an unprecedented monetary response in terms of the size of policy rate increases, across a wide range of central banks in a short span of time. Graph 1 shows the average of policy rates across a selection of central banks covering about 70 per cent of the global economy. If market expectations for policy rates pan out, then by the first part of next year the average policy rate will have increased by an amount comparable to the rise seen through the mid-2000s – but while that increase occurred over four years, this increase will have taken just four quarters. post at 6:05pm: RBA’s Kent: Fall in Trade Weighted A$ Will Add Only Modestly To Inflation RBA’s Kent: While a$ Down 14% on US$ This Year, Its Trade Weighted Index Has Fallen Only 2% RBA’s Kent: Estimate Dip in the TWI Will Add Only 0.2 Ppt to CPI Inflation Over a Few Years post at 6:05pm: RBA’s Kent: A$ TWI Has Moved Broadly in Line With Fundamentals, Commodity Prices RBA’s Kent: Broad Rise in US$ Will Raise Import Costs for Many Countries RBA’s Kent: Higher US$ Will Restrain Demand for U.S. Goods, Commodities and Global Inflation post at 6:06pm: RBA’s Kent: Strong US$ of Concern to Emerging Markets With High Levels of US$ Debt RBA’s Kent: Australian Offshore Debt Well Hedged, Higher U.S. Rates Should Not Affect Local Bank Borrowing Costs post at 6:06pm: RBA’s Kent: Repeats RBA Board Expects to Increase Interest Rates Further in the Period Ahead RBA’s Kent: Size and Timing of Rate Increases Will Depend on Incoming Data
- From youtube.com/cmegroup|May 23, 2022
Renewed risk-on sentiment, Australian election results and hawkish RBA comments lift AUD futures. Larry Shover explains.
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