Australian central bank Assistant Governor Chris Kent said the Reserve Bank of Australia will be better prepared to respond to the next crisis it faces. Kent made the comments after reviewing alternative monetary policy tools available to the central bank for emergency situations.

The review examined the RBA's toolkit for handling future economic disruptions, building on lessons from recent global financial turbulence. Central banks worldwide have been strengthening their crisis response capabilities following pandemic-era interventions and inflation surges that tested conventional policy frameworks.

Kent's assessment suggests the RBA has identified gaps in its current approach and is actively addressing them. This preparation work signals the bank is learning from past experiences to avoid being caught flat-footed when the next shock hits Australian markets and the broader economy.

For investors and businesses, this means greater certainty that the RBA can act decisively when needed. The central bank's proactive stance on crisis preparedness should provide some insulation against future market volatility, though the effectiveness will ultimately depend on how the new tools perform under real pressure.