RBA's Chris Kent spoke earlier, he noted that...>

RBA: RBA's Chris Kent spoke earlier, he noted that "there have been modest

revisions to the outlook for econ activity & inflation globally. Additionally,

downside risks are attracting more attention, from both mkt participants &

central banks. These changes have been accompanied by a rise in the mkts'

assessment of risks relating to the corporate sector, albeit from relatively low

levels. There has also been a reassessment of the outlook for MonPol, and

interest rates have shifted down across the yield curve. The decline in

sovereign yields has worked to partially offset the effect of higher risk

premiums & so finance is still readily available to borrowers at relatively low

rates. Broadly similar changes in econ & financial conditions have also occurred

domestically. While commodity prices have risen of late, Australia's ToT are

still f'cast to decline gradually over the next couple of years. Pulling all of

this together, it is not so surprising then that the AUD has depreciated a

little over recent months. While the AUD is still within the relatively narrow

range of the past few years, the recent dep'n is helpful at the margin given

that there remains spare capacity in the econ & inflation remains below target."