RBA Assist Gov Kent (Financial Markets): Board may have less tolerance for inflation below target - Additional Monetary Policy Tools: R

RBA may consider using tools earlier, front-load support - - Would consider responding more decisively to disinflation - - QE effect in Australia probably weaker than elsewhere - - Forward guidance with commitment difficult to implement - - Best for guidance to be explicitly set to economic outcomes - - Negative rates could in principle provide extra stimulus - - Negative rates over time can impair market functioning - - Cash rate remains primary, preferred instrument for goals - - RBA will be better prepared to respond to next crisis - - Link: