RBA’s Kent says recent data reinforce need to be vigilant to upside inflation risks

• Reserve Bank of Australia Assistant Gov Kent: Range of measures shows monetary policy is restrictive.
• RBA’s Kent: Policy contributing to slower growth of demand, lower inflation.
• RBA’s Kent: Recent data reinforced need to be vigilant to upside inflation risks.
• RBA’s Kent: Hence, not ruling anything in or out for interest rates.
• RBA’s Kent: Cash rate is above our range of estimates of the nominal neutral rate.
• RBA’s Kent: Financial conditions are particularly restrictive for households.
• RBA’s Kent: Conditions restrictive for smaller businesses, less so for larger.
• RBA’s Kent: Mortgage payments at record 10% of household disposable income.
• RBA’s Kent: Higher rates provide incentive for all households to save more and borrow less.

This article was written by Arno V Venter at www.forexlive.com.