RBA Signals Economic Stability Amid Easing Credit Conditions
Australia's central bank anticipates balanced economic growth as financial conditions ease. Christopher Kent, the Reserve Bank of Australia's assistant governor for financial markets, highlighted narrowing loan spreads and households accelerating mortgage repayments as signs of improving credit health. Competitive lending markets and lower funding costs are further stimulating business borrowing.
The RBA projects full employment and inflation stabilizing within its 2%-3% target range. Kent's remarks follow colleague Sarah Hunter's observation that Q3 underlying inflation may exceed earlier forecasts—hinting at lingering price pressures. Together, these statements reflect confidence in the cumulative impact of this year's three rate cuts.