Reserve Bank of Australia Assistant Governor (Financial Markets) Christopher Kent

  • expansion of balance sheet adding monetary stimulus
  • easing in financial conditions has been greater than during gfc
  • mix of longer-dated repos, govt bonds has led to broader, more durable easing
  • need for policy support to be provided for some time given economic outlook, high unemployment
  • want to see labour market conditions consistent with inflation in 2-3% target range
  • will not increase cash rate until actual inflation is sustainably in target range
  • term funding (TFF) for banks has lowered rates across economy, boosted lending
  • expects banks will draw down extra tff funding as "it will be profitable to do so"

Headlines via Reuters

Kent may as well be repeating Lowe - sticking to the RBA script.

Lowe gave just such forward guidance last week, the RBA needs to see inflation in the target range before it'll be hiking rates.

The target range is 2 to 3% (in a nutshell) and its not even close. It hasn't been for years.