Golden Finance reported that some observers believe that the Reserve Bank of Australia's monetary policy tools are more powerful than those of many other central banks because most of the country's mortgages are variable interest rates and household debt is high. HSBC Chief Economist Paul Bloxham said this means that in the post-COVID-19 era, the Reserve Bank of Australia does not have to tighten monetary policy as much as before to achieve the same effect. However, a recent speech by Kent, Assistant Governor of the Reserve Bank of Australia, broke this myth. Kent said there is nothing special about the effectiveness of the Reserve Bank of Australia's policy relative to other central banks. This is consistent with HSBC's view that because the Reserve Bank of Australia is tightening less than other central banks, it may take longer to cut interest rates. Bloxham warned that there is also a possibility that the Reserve Bank of Australia will not cut interest rates at all.