Australia's monetary policy impact is similar to that of other advanced economies, according to Assistant Governor Christopher Kent of the Reserve Bank of Australia (RBA).

Despite Australian households having a significant amount of variable-rate mortgage debt, the central bank's models indicate that the effects of unexpected policy rate increases on GDP and inflation align closely with those observed in the US, euro area, UK, Canada, and Sweden.

Kent's remarks highlight that the RBA's approach to monetary policy does not result in stronger economic effects than its counterparts in other developed nations. This insight comes as central banks globally navigate the complexities of inflation and economic growth, emphasizing the interconnectedness of monetary policy across advanced economies.