Nothing To Rock The Boat From Kent

Nothing to rock the boat in the latest address from RBA Assistant Governor Kent, with a panel discussion to follow. The conclusion notes the following:

• "Drawings under the TFF have picked up noticeably ahead of the 30 June deadline. We anticipate that the bulk of funding available under the facility will be taken up, and so the scheme will be providing a substantive source of low-cost funds for the next 3 years. This and the Bank's other policy measures have delivered, and will continue to deliver, very stimulatory monetary conditions until the economy returns to full employment and inflation is consistent with the target."
• "Recently, the improvement in the economic outlook globally and in Australia has contributed to a rise in sovereign bond yields to around pre-pandemic levels. Underpinning this, there has been an increase in inflation expectations to be more in line with central banks' targets. At the same time, expectations of shorter-term interest rates over the coming years have increased a bit. Even so, household and business borrowers continue to benefit from record low interest rates on most loans, their balance sheets are in good shape, and the economy is benefiting from supportive fiscal policy. So there are good prospects for growth and an eventual increase in wages and inflation. We anticipate that will be a gradual process, with inflation unlikely to be sustainably within the target range of 2−3 per cent until 2024 at the earliest."