Kelly Eckhold: Westpac Chief Economist on the Reserve Bank's decision to build up its foreign currency assets

Early Edition with Ryan Bridge · Nov 16, 2023 · 3m

Economists are praising the Reserve Bank's decision to build up its foreign currency assets.

It's bought and borrowed to drive its total foreign currency holdings up by a third, to a total of almost $18 billion.

Westpac Chief Economist, Kelly Eckhold, says it will give a signal the central bank is willing to step in if there's a shock to the economy.

He told Tim Dower that the move should reassure people.

Eckhold says it would be worrying if the bank didn't have the capacity.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.