RBA Assistant Governor Says Central Bank Better Positioned for Next Crisis on June 29

According to Jin10, Reserve Bank of Australia Assistant Governor Kent said on June 29 that the central bank will be better positioned to handle future risks after reviewing alternative monetary policy tools. Kent emphasized that the official cash rate remains the primary and preferred tool, while other instruments can provide important support during extraordinary periods, though they are more complex and carry greater risks.

Kent referenced the RBA's newly released supplementary monetary policy tools framework for low-rate environments. He noted that the policy committee's tolerance for inflation falling below the 2-3% target may decrease when rates are already at low levels, potentially prompting earlier and more decisive action to address deflationary shocks.