RBA Kent: Evaluating the State of Australia’s Financial Environment

Address at KangaNews Event

I appreciate the opportunity to speak at today’s KangaNews gathering. Every six weeks, the Monetary Policy Board reviews current economic conditions and future prospects, then determines the appropriate monetary policy settings to support stable, low inflation and maintain full employment.

The Board’s role includes deciding on the cash rate that will foster financial conditions aligned with these objectives. Financial conditions encompass a wide range of factors, including the cost and accessibility of funding for both households and businesses, as well as broader influences like exchange rates and asset values. All of these aspects are shaped by movements in the cash rate and related policy decisions.