Christopher Kent, Reserve Bank of Australia Assistant Governor (Financial Markets) is speaking this morning in Sydney.
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Headlines via Reuters:
- Australian banks are unquestionably strong
- Banks’ capital, liquidity positions well above APRA’s regulatory requirements
- Board will respond as necessary to bring inflation back to target in a reasonable time
- RBA will continue to closely monitor the transmission of monetary policy
- Likely to take longer than usual to see the full effect of higher interest rates on households
- Higher share of fixed-rate mortgages has delayed impact of rate rises
- Household savings amassed during pandemic adding to lag in monetary policy
- RBA is very conscious of the challenges facing borrowers from rapid rate rises
- A wide range of borrowers appear to have built up sizeable mortgage buffers
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APRA stands for the Australian Prudential Regulation Authority. It is the prudential regulator of the Australian financial services industry, including banks, insurance companies, superannuation funds, and other financial institutions.