RBA’s Kent: Household Demand Weakening, AUD Slightly Above Equilibrium

Reserve Bank of Australia official Kent said household demand is weakening while business credit remains strong, highlighting a split in domestic conditions.

He added that the Australian dollar may be marginally above its equilibrium level. Firms are inclined to pass on cost pressure, and housing tax changes have been moving in a helpful direction for monetary policy.

The remarks suggest soft consumer demand is sitting alongside resilient business lending and ongoing cost pass-through pressures. On the currency, the RBA sees the Aussie as slightly rich relative to equilibrium. The overall picture is mixed: soft household demand, solid business credit, and persistent cost pressures.