Reserve Bank of Australia Assistant Governor Chris Kent said monetary policy is
currently contractionary, with three rate rises earlier this year now
restraining the economy. Borrowing costs and mortgage repayments have risen, the
mature housing market has weakened, and the AUD’s year-to-date appreciation has
amplified the effect. Kent said evidence suggests overall demand growth appears
to be slowing — a development policymakers want and see as necessary to bring
inflation back to target.