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