Assistant Chairman of the Reserve Bank of Australi

Aihucha News, October 11: Kent, Assistant Chairman of the Reserve Bank of Australia, said today that the impact of past interest rate hikes has now begun to appear. The Reserve Bank of Australia has kept interest rates at a ten-year high of 4.1% for the past four months, waiting to see whether a cumulative 400 basis points of tightening will be enough to curb inflation. Kent noted that mortgage payments for households are already at record highs and will rise further as older fixed-rate loans come due. Higher interest rates also increase the incentive for households to save rather than spend. Kent said: “The lag in transmission means that the further impact of interest rate increases so far will push inflation further down. Further tightening of monetary policy may be needed to ensure that inflation, which remains too high, returns to normal within a reasonable time frame. Target level.”