RBA’s Kent Says Rate Cuts Containing Currency, QE a Long Way Off
- Kent Says RBA will also lift Committed Liquidity Facility Fee
- Changes come after foreign buy-and-hold investors waned
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Australia’s back-to-back interest-rate cuts are helping check the currency, Reserve Bank official Christopher Kent said, while quantitative easing is still “pretty unlikely” even as traditional policy ammunition wanes.
In a response to questions after a speech at Bloomberg’s Sydney headquarters on Tuesday, Assistant Governor Kent said the exchange rate transmission from rate cuts has been “broadly working as you would expect.” The Australian dollar is being supported by “a welcome” increase in commodity prices and other major banks turning dovish.