Assistant Governor of the Reserve Bank of Australia: We will be better equipped to handle the next crisis

```htmlGolden Ten Data reported on June 29 that Reserve Bank of Australia Assistant Governor Kent stated that after reviewing alternative monetary policy tools, the institution will be better equipped to handle risks it faces next. He said, “The cash rate target remains our main and preferred tool, and in special circumstances, other tools can play an important role and provide additional support, but they are more complex and carry greater risks.” In his speech, Kent mentioned the monetary policy committee's newly published framework for supplementary monetary policy tools in a low interest rate environment. He emphasized that when rates are already low, the committee’s tolerance for inflation dropping below the 2% to 3% target may decrease. He stated that in such situations, the central bank might consider lowering the cash rate target ahead of time and responding to deflation shocks earlier and more decisively.```