RBA’s Kent: Current Cash Rate Estimate Shows Policy Is Somewhat Restrictive

The signal here is the gap between the RBA's read on households and its read on corporates: consumption is expected to soften while business credit stays quite strong, so the transmission of a somewhat restrictive cash rate looks uneven across the economy. That matters for anyone tracking how far the RBA thinks policy is biting, since a split like this complicates the case for further moves in either direction. Whether business credit strength persists as household demand cools is the open question.