Key statement from RBA's Asst Gov, Kent..

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Reserve Bank of Australia assistant gov Kent says he is ‘not overly concerned about level of AUD and that it is not far from fundamental.


Some key points from his address:

  • To watch 3 year yields closely and to buy more if yields move away from 25bps.
  • Negative rates would not be helpful in current circumstances, new monetary policy would come with costs and new policy measures are not under consideration
  • There is room for further growth in RBA balance sheets.


Markets are looking for such comments on the currency – and the currency is printing fresh highs for the session to 0.7122. 



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