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…
An about-face by the Australian Financial Markets Association on the way our bank bill swap rate is calculated comes as the US mortgage giant Freddie Mac filed a lawsuit alleging unlawful conduct by a number of investment banks.
AAP
Last week, the Australian Financial Markets Association (AFMA), the investment bankers' trade union, announced that it was changing the way that it calculated the Bank Bill Swap rate (BBSW), the Australian…
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…
As the ABC’s Four Corners explored, small investors are being caught in an unregulated investment market, often with devastating results. Has the corporate regulator dropped the ball – or is it juggling too many?
ABC Four Corners
Stephen Long’s story last night on the ABC’s Four Corners beautifully illustrated the human cost of financial misconduct, as retirees and widows described the pain of having lost their super funds and…
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…
If there’s one thing we can say with certainty, it’s that economic forecasting is far from an exact science.
Image from www.shutterstock.com
One certainty about economic forecasts is that, almost certainly, they will prove to be incorrect. The best forecasters can hope for is not to make systematic errors – to get it right on average – and…
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…
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…
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…
RBA Governor Glenn Stevens denies any cover-up over allegations surrounding two RBA subsidiaries. But how well are public institutions dealing with issues of transparency, corruption and whistleblowing?
The latest scandal engulfing Note Printing Australia and Securency highlights how well – or otherwise – the public sector deals with critical issues of transparency, corruption and whistleblowing.
The…
Some commentators have suggested that the RBA should intervene in currency markets to tame the Australian dollar. But is this a wise move?
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As foreign central banks continue to park their money in our triple-A rated bonds, the Australian dollar continues its inevitable ascent.
The dollar traded as high as US106.03¢ after the RBA left the…
To ensure a sound financial system, policymakers should balance the twin objectives of stability and competition.
Reactions to my call this week for another inquiry into Australia’s financial system have been mixed. Most commentators seem to accept that there’s logic in having another inquiry, even if some think…
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…
With the rest of the world mired in economic crises, it seems Australia is the place for foreign central banks to park their assets.
Krug6
Central banks everywhere – from Russia to the Czech Republic – are piling into Australian-dollar-denominated assets. This has limited the fall of the Australian dollar to around 3% from its peak even though…
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…
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…
Political, rather than economic: economists say there is no direct link to surpluses and lower interest rates.
AAP
The Federal Government is continuing its pre-budget surplus sell, with Prime Minister Julia Gillard directly linking its plans to return the budget to surplus to lower interest rates.
Gillard will use…
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…
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…
Banks such as NAB are reportedly positioning themselves to use covered bonds to raise funds.
Australian banks are positioning themselves to take advantage of new laws allowing them to use the new instrument of covered bonds to raise funds.
Our large banks especially have enthusiastically welcomed…
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…
Former Securency chief financial officer Mitchell Anderson, left, is facing foreign bribery charges.
The laying of charges against two Reserve Bank of Australia subsidiaries and six of their former senior managers for alleged bribery of foreign officials represents a truly historic moment in Australian…
There is economic reasoning behind Glenn Stevens’s low public profile.
AAP
Late last month, Ben Bernanke held the first ever press conference by a chairman of the US Federal Reserve Bank.
For more than an hour, he took questions about the Federal Open Market Committee’s decision…
