Reserve Bank of Australia Assistant Governor Christopher Kent said in a speech that mounting evidence of rising global neutral interest rates raises doubts over whether policy is as restrictive as assumed despite four hikes this year. He was also confident settings are somewhat tight but questioned whether they are tight enough. A higher neutral rate suggests the 4.6% cash rate may be exerting less drag on demand and inflation than policymakers expect, strengthening the case for keeping rates elevated or tightening further. His remarks come as the RBA weighs its next move after September’s hike, citing persistent inflation, energy costs linked to Middle East conflict, and capacity pressures. Kent noted household demand is softening while business credit remains strong, and housing tax changes support restraint. On labor, he cautioned against over-reading monthly data but acknowledged easing, with September employment down and unemployment at 4.7%, a five-year high.