Australia's monetary policy impact is comparable to that of other advanced economies, according to Assistant Governor Christopher Kent of the Reserve Bank. Despite households holding significant variable-rate mortgage debt, the central estimates indicate that GDP and inflation responses to unexpected policy rate increases align closely with those in the US, euro area, UK, Canada, and Sweden.
Large US tariffs on China could negatively impact Australia, according to a senior official from the Reserve Bank of Australia. Assistant Governor Christopher Kent expressed concerns about the uncertainty surrounding the size and application of these tariffs during a parliamentary panel in Canberra. Despite this, the Australian dollar has shown limited reaction to the recent political developments.
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