RBA’s Kent:

  • Haven’t ruled out FX intervention
  • Falling oil prices positive for household incomes
  • AUD too high relative to fundamentals
  • Looking forward to a time when the US normalizes rates

As you’d expect, AUD hit lower on the intervention comment

Overflow into the NZD also, but its not down nearly as much

Kent’s earlier comments are here: Australia – RBA’s Kent: Reiterates that the AUD is above most estimates of fundamental value


  • Macroprudential steps being considered on home lending are modest ones
  • Labour market is subdued, but signs things are improving
  • Jobless rate is broadly consistent with below trend growth
  • China still a positive story for Australia

Q&A concluded now