Reserve Bank of Australia (RBA) Assistant Governor Chris Kent says the central bank is improving its preparedness for future crises after reviewing alternative monetary policy tools. Speaking in Sydney, Kent said the cash rate target remains the RBA’s primary and preferred policy instrument. However, he said other tools can be important during “extraordinary times,” when circumstances may require additional support beyond standard rate adjustments. The RBA review focuses on how these supplementary instruments could contribute to crisis response, while keeping the cash rate as the main approach under normal conditions. Kent’s comments reflect an effort to ensure the RBA has a broader set of options and clearer contingency planning if financial conditions deteriorate or policy transmission becomes constrained. All accounts agree that the RBA is not replacing the cash rate target, but is assessing and refining its capacity to use other measures if the next crisis calls for them.
RBA’s Chris Kent says review strengthens readiness for next crisis
Reserve Bank of Australia (RBA) Assistant Governor Chris Kent says the central bank is improving its preparedness for future crises after reviewing alternative monetary policy tools. Speaking in Sydne...
- RBA Assistant Governor Chris Kent says the RBA is better prepared for the next crisis.
- Kent says a review of alternative monetary policy tools underpins the assessment.
- The cash rate target remains the RBA’s primary and preferred instrument.
- Additional monetary policy tools may be important during extraordinary times.
- Kent makes the comments in a speech in Sydney, outlining the RBA’s crisis-response framework.
The Australian central bank’s assistant governor Chris Kent says the institution will be better prepared to respond to the next crisis it faces following a review of alternative monetary policy tools.
2 hours agoAustralian central bank Assistant Governor Chris Kent said the institution will be better prepared to respond to the next crisis it faces following a review of alternative monetary policy tools. In a speech in Sydney, Kent, who oversees financial markets at the Reserve Bank, said the cash rate target remains the primary and preferred instrument, but additional tools can play an important role during extraordinary times and provide some extra support. (Source: Bloomberg)
2 hours agoAustralian central bank Assistant Governor Chris Kent said the institution will be better prepared to respond to the next crisis it faces following a review of alternative monetary policy tools.
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