According to Jin10 data, some observers believe that the monetary policy tools of the Reserve Bank of Australia are more powerful than those of other central banks, as most mortgages in Australia are variable rate and household debt is high.
HSBC's Chief Economist Paul Bloxham stated that the Reserve Bank of Australia does not need to tighten its policies as significantly as in the past to be effective. However, the speech by Assistant Governor Kent pointed out that the effectiveness of its policies is not particularly remarkable.
This is in line with HSBC's view that the tightening of the Reserve Bank of Australia is less than that of other central banks, thus interest rate cuts may take longer. Bloxham warned that the Reserve Bank of Australia may not cut rates at all.
