- Analytics
- News and Tools
- Market News
- RBA’s Kent: Forward guidance in Australia might be less useful than in the United States
RBA’s Kent: Forward guidance in Australia might be less useful than in the United States
In a speech in Canberra on Monday, Reserve Bank of Australia (RBA) Assistant Governor Christopher Kent said that the ”forward guidance in Australia might be less useful than in the United States.”
Further comments
Variable rate mortgages are a key difference of the Australian system.
No evidence monetary policy overall is more potent in Australia than elsewhere.
Arrears rates here remain low, similar to economies with much more fixed-rate lending.
Most borrowers have buffers to help manage higher interest rates.
Worth reviewing the RBA’s approach to forward guidance from time to time.
Including considering other ways the RBA might clarify the nature of its reaction function.
Market reaction
AUD/USD is consolidating its rebound following these comments. The pair currently trades at 0.6465, up 0.07% on the day.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
