RBA’s Kent: Expansion of balance sheet adding monetary stimulus

rba’s kent: expansion of balance sheet adding monetary stimulus
-          easing in financial conditions has been greater than during gfc

-          mix of longer-dated repos, govt bonds has led to broader, more durable easing

-          need for policy support to be provided for some time given economic outlook, high unemployment

-          want to see labour market conditions consistent with inflation in 2-3% target range

-          will not increase cash rate until actual inflation is sustainably in target range

-          term funding (tff) for banks has lowered rates across economy, boosted lending

-          expects banks will draw down extra tff funding as ‘it will be profitable to do so’