The Reserve Bank of Australia should leave interest rates unchanged this month according to the consensus of Shadow Reserve Board members.
Amid market uncertainty over whether the RBA board may choose…
Despite continuing unrest in Europe – particularly Cyprus – the global economy has firmed, say Shadow Reserve Bank commentators.
The consensus of the nine members of the Shadow Board is that the Reserve Bank of Australia should leave interest rates unchanged from March at 3.00%. But the balance of risks implies rates should rise…
A number of Shadow Bank commentators point to a slight uplift in the housing market as a sign that interest rates should rise in the medium term.
No change remains the consensus of the nine members of the Shadow Board in the Reserve Bank of Australia holding interest rates unchanged from February at 3.00%. But rates need to rise significantly within…
RBS joins the list of banks implicated in the ever-widening LIBOR scandal.
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In his recent interview with Oprah Winfrey, Lance Armstrong belatedly admitted to taking illicit drugs throughout his career. But in doing so, he also shed light on a corrupt culture within the sport involving…
A blunt instrument: the case for interest rates to rise is strengthened by rising unemployment and a persistently high Australian dollar which has defied previous cuts.
AAP
The Shadow Reserve Board, an initiative of the Centre for Applied Macroeconomic Analysis (CAMA) made up of eminent industry and academic economists, returns this month.
Reserve Bank of Australia board…
The US Federal Reserve has made explicit the economic targets it wants to reach through its monetary policy.
AAP
The announcement by the US Federal Reserve Bank that it would link its monetary policy to the achievement of specific economic targets beyond inflation is a new development in its approach to policy…
The CAMA Shadow Board believes the Reserve Bank of Australia should leave the cash rate unaltered.
AAP
The Reserve Bank of Australia should leave the cash rate unchanged tomorrow, with little evidence suggesting an interest rate cut is justified, according to members of the CAMA Shadow Board.
The Shadow…
Warning signals about global slowing have been there for some time – yesterday’s cash rate cut should not have been a surprise.
Monetary policy must be forward looking. It has limited ability to affect the here and now of the economy, as this has largely already been determined – by employment decisions, investment decisions and…
There are as many compelling reasons for the Reserve Bank to cut interest rates as there are to leave them unchanged.
AAP
Predicting the Reserve Bank’s interest rate decision for October appears to be particularly tough for economic commentators.
A decline in iron ore prices, compounded with a stubbornly high dollar, has…
The Reserve Bank of Australia is expected to keep the cash rates unchanged tomorrow: but prominent economists say the case for a cut may be firming.
AAP
CAMA’s Shadow Board, which gives its views ahead of the decision by the Reserve Bank of Australia, continues to support the current setting of the cash rate at 3.5%.
But economists are seeing a greater…
The reserve bank should hold the cash rate steady tomorrow – but CAMA’s Shadow board members see greater uncertainty long term.
AAP
The Conversation, in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA), presents the monthly findings of the Shadow Board, prior to the meeting of the Reserve Bank of Australia Board…
Barclays – Britain’s largest investment bank – has been fined after it was revealed that the bank had manipulated the London Interbank Offered Rate to boost its trade of credit derivatives and bolster its financial reputation.
AAP
The sense of frustration and despair within the British government and regulatory agencies over the behaviour of Barclays in submitting patently false returns to the London Interbank Offered Rate (LIBOR…
The Reserve Bank of Australia should keep interest rates on hold, say a group of influential economists.
AAP
The Conversation, in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA), will present the monthly findings of the Shadow Board, a day before the Reserve Bank of Australia Board meets…
What’s the true picture of Chinese economic stimulus? China’s decision to cut interest rates actually has modest implications for Australia.
AAP
Last week’s decision by China to cut interest rates by 0.25% seemed to attract almost as much attention in Australia as the same decision by the Reserve Bank of Australia (RBA) several days earlier.
The…
Pay it down – Treasurer Wayne Swan goes through his now-usual exhortation to banks to pass on today’s Reserve Bank 25 basis point rate cut in full.
AAP
Amid the tumultuous economic climate in the US and Europe – not to mention the tumbling fortunes of our sharemarket – the Reserve Bank of Australia has followed market sentiment and cut the official cash…
Given the RBA’s decision to slash the cash rate by 50 basis points, it’s hard to justify Treasurer Wayne Swan’s pursuit of a budget surplus.
AAP
The former Governor of the Reserve Bank, Bernie Fraser, hit the nail on the head the other night when he found it absurd that the Reserve Bank could be reducing interest rates one day, while a week later…
Will the banks follow the lead of the RBA and cut interest rates?
AAP
The pressure is on Australia’s major banks to pass on the Reserve Bank of Australia’s 50 basis point cut in full to Australian households and businesses.
In a surprise move, the RBA slashed Australia…
RBA governor Glenn Stevens will no doubt be portrayed in a flattering light if the board cuts rates today: but not everyone is a winner.
AAP
UPDATE: The Reserve Bank of Australia has cut Australia’s official cash rate by a larger-than-expected 50 basis points, to 3.75%.
In the likely event that the Reserve Bank Board chooses to ease the target…
Publishing long-term interest rate projections can allow the Reserve Bank to operate with greater transparency.
AAP
Today, all eyes will be on the Reserve Bank amid speculation that the cash rate will be eased by at least 25 basis points.
The RBA has often faced pressure from politicians and business leaders to reduce…
Moves by ANZ last week to hike their interest rates was criticised by Treasurer Wayne Swan: but historically, banks have often been at odds with governments.
AAP
In Australia’s economic history, there always been tension between Labor and the banks. My grandfather was an adviser to wartime Labor Treasurer and Prime Minister, Joseph Benedict Chifley, better known…
AWU chief Paul Howes' call for the Reserve Bank to tackle more than inflation should serve as an ongoing debate about macroeconomic policy.
AAP
The head of the Australian Workers Union chief Paul Howes has called on the Federal government to urgently review the Charter of the Reserve Bank of Australia, suggesting its current policy setting is…
Contrary to a report published by French bank Societe Generale, Reserve Bank Governor Glenn Stevens confirmed that funding costs for Australian banks had increased.
AAP
Predicting the setting for the banks' standard variable housing loan interest rate used to be simple. Before the subprime crisis in the US and the subsequent GFC, the variable rate was simply the RBA target…
Reserve Bank of Australia Governor Glenn Stevens: knowing how individuals board members think is important.
AAP
Monetary policymaking is imperfect. When board members of a central bank such as the Reserve Bank of Australia sit down to set the appropriate target cash rate each month – as they did this week – there…
Decoupled: The Reserve Bank of Australia’s decision to hold interest rates has been ignored by the banks.
AAP
By Kevin Davis, Australian Centre for Financial Studies
Last week, the Reserve Bank defied market expectations to announce the 4.25% cash rate would remain unchanged. But the surprise decision by Australia’s Big Four banks to act independently of the Reserve…
Three of Australia’s Big Four banks have opted to offshore part of their financial operations to Asia.
AAP
Reports of more offshoring of jobs from Australia to other countries are, seemingly, a daily occurrence. Such reports include, for example, the manufacturing of cars and their components and aspects of…
ANZ and NAB have cut their mortgage rates. Will the other two major banks follow suit?
AAP
ANZ and National Australia Bank have passed on the Reserve Bank of Australia’s 0.25% interest rate cut to mortgage holders, lowering their standard variable rates.
Treasurer Wayne Swan called on the big…
Banks increasingly choose not to follow the lead of Reserve Bank of Australia Governor Glenn Stevens on interest rates.
AAP
By Kevin Davis, Australian Centre for Financial Studies and Josh Fear, University of Canberra
As Reserve Bank of Australia board members gather today to ponder Australia’s cash rate, financial markets are having a bet each way the RBA will cut rates amid the release of data reflecting a softening…
The Reserve Bank of Australia has cut the official cash interest rate by 25 basis points, from 4.75% to 4.5%, in a move matching most economists' expectations.
It was the first cut since April 2009…
Glenn Stevens has acknowledged the impact of deleveraging on Australia’s economy.
AAP
I have a hunch that the RBA will follow its conventional “neoclassical” models and raise rates this afternoon, even though the economy is locked in “two speed” mode, and the global economy is racked by…
