Created
: 2025.10.16
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
RBA's Kent: Cash rate now within wide, uncertain neutral range
World FX news
Breaking news
RBA's Kent: Cash rate now within wide, uncertain neutral range
New
2025.10.16 10:57
2025.10.16 10:57
2025.10.16 10:57
Reserve Bank of Australia (RBA) Assistant Governor (Financial Markets) Christopher Kent spoke at the CFA Society Australia Investment Conference 2025 late Wednesday.
Key quotes
Financial conditions less restrictive after recent rate cuts.
Cash rate now within wide, uncertain neutral range.
Neutral rate not a reliable guide for near-term policy.
Economic forecasts show tightness easing, but outlook uncertain.
RBA to reassess outlook with incoming data and risks.
Market reaction
RBA FAQs
The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy for Australia. Decisions are made by a board of governors at 11 meetings a year and ad hoc emergency meetings as required. The RBA's primary mandate is to maintain price stability, which means an inflation rate of 2-3%, but also "..to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people." Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will strengthen the Australian Dollar (AUD) and vice versa. Other RBA tools include quantitative easing and tightening.
While inflation had always traditionally been thought of as a negative factor for currencies since it lowers the value of money in general, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Moderately higher inflation now tends to lead central banks to put up their interest rates, which in turn has the effect of attracting more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in the case of Australia is the Aussie Dollar.
Macroeconomic data gauges the health of an economy and can have an impact on the value of its currency. Investors prefer to invest their capital in economies that are safe and growing rather than precarious and shrinking. Greater capital inflows increase the aggregate demand and value of the domestic currency. Classic indicators, such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can influence AUD. A strong economy may encourage the Reserve Bank of Australia to put up interest rates, also supporting AUD.
Quantitative Easing (QE) is a tool used in extreme situations when lowering interest rates is not enough to restore the flow of credit in the economy. QE is the process by which the Reserve Bank of Australia (RBA) prints Australian Dollars (AUD) for the purpose of buying assets - usually government or corporate bonds - from financial institutions, thereby providing them with much-needed liquidity. QE usually results in a weaker AUD.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the Reserve Bank of Australia (RBA) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the RBA stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It would be positive (or bullish) for the Australian Dollar.
Last updated
: 2025.10.16
Related articles
AUD/USD climbs after hawkish RBA remarks, rising Q3 inflation
33 minutes agoCanadian Dollar looks higher as bullish recovery continues
38 minutes agoUSD/JPY climbs as Yen weakens on BoJ caution, US fiscal progress
2025.11.11 01:55Fed's Miran: Inflation is coming down
2025.11.11 01:50USD/CHF holds steady as US Dollar stabilizes following Senate funding bill progress
2025.11.11 00:52GBP/USD consolidates as US shutdown optimism and BoE data drive sentiment
2025.11.11 00:32
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Gold rises despite easing Fed cut bets, US Dollar recovery
Gold price rallies over 2% on Monday as investors increases bets on a Federal Reserve (Fed) rate cut at the December meeting. Meanwhile, news of a possible reopening of the US government pushed the Greenback higher, yet the yellow-metal buyers remain reluctant to give way to earlier gains.
New
2025.11.11 03:24AUD/USD climbs after hawkish RBA remarks, rising Q3 inflation
AUD/USD appreciates toward 0.6520 on Monday at the time of writing, up 0.40% for the day.
New
2025.11.11 03:14Canadian Dollar looks higher as bullish recovery continues
The Canadian Dollar (CAD) hit a bit of a bump and run against the US Dollar (USD) on Monday, clawing back further ground in a much-needed technical bounce-back from 30-week lows.
New
2025.11.11 03:09Dow Jones Industrial Average looks upward as government restart gears turn
The Dow Jones Industrial Average (DJIA) steadies its grip on Monday, starting the new trading week holding near the 47,000 major handle.
New
2025.11.11 02:46USD/JPY climbs as Yen weakens on BoJ caution, US fiscal progress
USD/JPY holds around 154.00 on Monday at the time of writing, up 0.40% on the day, close to its eight-month high of 154.49. The pair remains supported by the persistent weakness of the Japanese Yen (JPY), pressured by uncertainty over the Bank of Japan (BoJ)'s policy outlook.
New
2025.11.11 01:55Fed's Miran: Inflation is coming down
Federal Reserve (Fed) governor Stephen Miran spoke in an interview with CNBC on Monday, discussing inflation and monetary policy. He stated that inflation is decreasing and that maintaining the course on rate cuts is the correct decision.
New
2025.11.11 01:50USD/CHF holds steady as US Dollar stabilizes following Senate funding bill progress
USD/CHF holds near 0.8060 on Monday at the time of writing, up 0.10% on the day, as the US Dollar (USD) stabilizes after the United States (US) Senate approved a measure to extend federal funding through January. This political progress helps ease fears of another potential government shutdown.
New
2025.11.11 00:52GBP/USD consolidates as US shutdown optimism and BoE data drive sentiment
GBP/USD consolidates during the North American session, remains steady at around 1.3150 amid growing speculation that the US government shutdown might end soon, a tailwind for the US Dollar, which trimmed some earlier losses.
New
2025.11.11 00:32Fed's Musalem: US economy pretty resilient
Federal Reserve Bank of St. Louis President Alberto Musalem spoke in an interview with Bloomberg Television on Monday about the United States (US) economy. He stated that inflation is closer to 3% than to the 2% target and emphasized that "we have sufficient information to make policy decisions."
New
2025.11.11 00:05JPY underperforming on sentiment - Scotiabank
The Japanese Yen (JPY) is weak, down 0.5% against the US Dollar (USD) and underperforming all of the G10 currencies as we head into Monday's NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.11.10 23:34Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
