Reserve Bank of Australia's Kent says Australian banks are undeniably strong

Christopher Kent, Reserve Bank of Australia Assistant Governor (Financial Markets) is speaking this morning in Sydney.

Full text:

• Long and Variable Monetary Policy Lags

Headlines via Reuters:

• Australian banks are unquestionably strong
• Banks’ capital, liquidity positions well above APRA’s regulatory requirements
• Board will respond as necessary to bring inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term back to target in a reasonable time
• RBA will continue to closely monitor the transmission of monetary policy
• Likely to take longer than usual to see the full effect of higher interest rates on households
• Higher share of fixed-rate mortgages has delayed impact of rate rises
• Household savings amassed during pandemic adding to lag in monetary policy
• RBA is very conscious of the challenges facing borrowers from rapid rate rises
• A wide range of borrowers appear to have built up sizeable mortgage buffers

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APRA stands for the Australian Prudential Regulation Authority. It is the prudential regulator of the Australian financial services industry, including banks, insurance companies, superannuation funds, and other financial institutions.