RBA's Kent Signals More Decisive Response to Disinflation, Eyes Earlier Policy Easing
RBA official Kent indicated the central bank would respond more aggressively to future disinflation, potentially using policy tools earlier and front-loading support, with less tolerance for inflation below target.
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RBA's Kent stated that the central bank is considering a more decisive response to disinflation in the future. This could involve using policy tools earlier and front-loading support to address economic weakness.
He also signaled reduced tolerance for inflation falling below the target, suggesting a shift in the central bank's reaction function. The remarks point to a potential easing bias, with policymakers prepared to act swiftly if disinflationary pressures persist.
Source: First Squawk