- RBA’s Kent: Size and timing of rate increases will depend on incoming data
Market news
RBA’s Kent: Size and timing of rate increases will depend on incoming data
“Size and timing of rate increases will depend on incoming data,” said Christopher Kent, Assistant Governor (Economic) at the Reserve Bank of Australia (RBA) during early Monday morning in Australia.
Additional comments
Fall in trade-weighted A$ will add only modestly to inflation.
While A$ down 14% on US$ this year, its trade-weighted index has fallen only 2%.
Estimate dip in the TWI will add only 0.2 ppt to CPI inflation over a few years.
A$ TWI has moved broadly in line with fundamentals, commodity prices.
Broad rise in US$ will raise import costs for many countries.
Higher US$ will restrain demand for u.s. goods, commodities and global inflation.
Strong US$ of concern to emerging markets with high levels of us$ debt.
Australian offshore debt well hedged, and higher US rates should not affect local bank borrowing costs.
RBA board expects to increase interest rates further in the period ahead.
AUD/USD extends Friday’s run-up
AUD/USD manages to stretch Friday’s upbeat performance while piercing the 0.6400 threshold, despite the softer data and mixed comments from the RBA’s Kent.
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