{
  "id": 15550539,
  "title": "RBA's Kent: Reasonable indication neutral rates are increasing domestically and globally",
  "url": "https://urgent.news/2026/10/18/rbas-kent-reasonable-indication-neutral-rates-are-increasing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-18T23:22:18.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/rbas-kent-reasonable-indication-neutral-rates-are-increasing-domestically-and-globally-202610182322"
  },
  "original_language": "en",
  "account": "Reserve Bank of Australia (RBA) Assistant Governor Chris Kent indicated on Monday that neutral rates are rising both domestically and globally, but pinpointing the exact neutral rate remains challenging due to high uncertainty. The tax adjustments on housing have a positive impact on monetary policy. Kent expressed confidence that current policy is somewhat restrictive, though it remains to be seen if it is restrictive enough. Household demand is softening, yet business credit remains strong. While he expressed cautiousness about monthly job figures, Kent noted that the labor market is becoming less restrictive. The Australian Dollar (AUD) has seen a slight increase of 0.28% against the US Dollar (USD), trading around 0.6965 at the time of reporting. Key factors influencing the AUD include the Reserve Bank of Australia's (RBA) interest rate decisions, as Australia is a resource-rich nation with iron ore as its primary export. The health of China, Australia's largest trading partner, as well as inflation, growth rate, and trade balance, also play significant roles. Market sentiment, whether investors are adopting riskier assets (risk-on) or seeking safe-haven assets (risk-off), can impact the AUD positively or negatively. The RBA influences the AUD by setting interest rates that other banks can lend to each other, which in turn affects interest rates across the economy. The main objective of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates accordingly. Higher interest rates compared to other major central banks support the AUD, while lower rates have the opposite effect. Quantitative easing and tightening can also be used to influence credit conditions, with quantitative easing negatively impacting the AUD and tightening positively. China's economic performance significantly influences the AUD's value, as increased demand for raw materials, goods, and services from China lifts the AUD's demand and value. Conversely, a slowdown in China's growth rate can have a negative impact.",
  "summary": "Reserve Bank of Australia (RBA) Assistant Governor Chris Kent said on Monday that reasonable indication neutral rates are increasing domestically and globally, adding that it’s difficult to pinpoint neutral rate amid high uncertainty.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}