RBA's 'restrictive' stance leaves rate path finely balanced
A senior RBA assistant governor says the three rate rises delivered this year are working, but global forces and uncertainty around financial conditions mean the Reserve Bank is not yet ready to declare victory on inflation.
Christopher Kent, RBA Assistant Governor (Financial Markets), has said the current official cash rate level is well poised to combat inflation. (Image source: Gary Yim/Shutterstock.com + RBA)
The Reserve Bank of Australia has given borrowers an important reason to hope that the current interest rate cycle is nearing its peak, but a senior RBA official’s assessment of financial conditions also makes clear that a rate cut remains some way off.
Speaking in Sydney on Thursday, Christopher Kent, the RBA’s Assistant Governor (Financial Markets), said the cash rate of 4.35 per cent
was already having the intended effect of restraining demand…
