Reserve Bank of Australia Assistant Governor (Financial Markets) Christopher Kent, at the CFA Society Australia Investment Conference 2025.
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RBA’s Kent says financial conditions less restrictive after recent rate cuts
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Cash rate now within wide, uncertain neutral range
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Neutral rate not a reliable guide for near-term policy
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Economic forecasts show tightness easing, but outlook uncertain
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RBA to reassess outlook with incoming data and risks
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RBA Assistant Governor Christopher Kent said Australia’s financial conditions are beginning to loosen after this year’s three rate cuts, with credit flowing more easily to households and businesses. He cautioned that the concept of a “neutral rate” is too uncertain to guide near-term policy, noting estimates vary widely. Kent said the RBA will continue reassessing the outlook as new data and risks emerge, highlighting that while policy is less restrictive, considerable uncertainty remains about inflation and growth trajectories.
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We heard from his boss earlier:
The RBA next meet November 3 and 4. A rate cut is very uncertain.
