Central Banks

RBA’s Kent says RBA is not targeting the unemployment rate with policy

Reserve Bank
of Australia Assistant Governor (Financial Markets) Christopher Kent in the Q&A session 

  • Says the RBA is an inflation targeting Bank
  • Not targeting the unemployment rate 
  • but there is more spare capacity than we’ve anticipated

OK … so TL;DR version is the RBA is targeting the unemployment rate. Even more TL;DR version is the Bank is in easing mode. More rate cuts ahead.  

AUD response is zzzzzzzzzzzzzzzzzz …. not much movement at all. 

More:

  • its unlikely there will be a need for unconventional policies, but its possible
  • negative rates at the more extreme end of unconventional policy 

Earlier post:

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