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Kent: Exchange Rates and Inflationary Pressures
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 ... (full story)
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RBA’s Kent: Fall in Trade Weighted A$ Will Add Only Modestly To Inflation
— *seven (@sevenloI) October 23, 2022
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
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RBA’s Kent: A$ TWI Has Moved Broadly in Line With Fundamentals, Commodity Prices
— *seven (@sevenloI) October 23, 2022
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
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RBA’s Kent: Strong US$ of Concern to Emerging Markets With High Levels of US$ Debt
— *seven (@sevenloI) October 23, 2022
RBA’s Kent: Australian Offshore Debt Well Hedged, Higher U.S. Rates Should Not Affect Local Bank Borrowing Costs
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RBA’s Kent: Repeats RBA Board Expects to Increase Interest Rates Further in the Period Ahead
— *seven (@sevenloI) October 23, 2022
RBA’s Kent: Size and Timing of Rate Increases Will Depend on Incoming Data