Interest rates

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Sharemarket volatility demonstrates global frothiness; nevertheless the case is weak for an interest rates cut. AAP/Dan Peled

Trouble looms, so rates should hold

The best course of action for the Reserve Bank is to hold off changing rates; but the longer term case for an increase is changing.
Reserve Bank of India Governor Raghuram Rajan has taken a no-nonsense approach to curbing inflation. Danish Siddiqui/Reuters

India debates monetary policy in shadow of US rate rise

Monetary policy involves more than managing inflation, which is why it sometimes takes a committee to decide interest rates.
Running the economy is a bit like running a race… Jogger wall via www.shutterstock.com

How the Federal Reserve keeps the US economy from bonking

My buddy is training for his third Chicago Marathon. I’m preparing for a 10K mud-run. He’s really fit and a family nurse practitioner, so I seek his advice on how to get in shape and what to eat. His advice…
That $550 from the carbon tax repeal might be in your bank account, or it might have been gobbled up by exchange rates. baranq/Shutterstock.com

Trying to measure the savings from the carbon tax is a mug’s game

The carbon tax repeal was supposed to save the average household A$550. And it might well have done, but teasing out the exact figure amid the myriad other economic factors is a herculean task.
Reserve Bank governor Glenn Stevens condemned the “inability to find political agreement” on infrastructure. AAP/Dan Peled

Another rate cut possible due to weak economy: Stevens

Reserve Bank governor Glenn Stevens has left open the possibility of another rate cut, but warned against expecting monetary policy to do too much of the work in encouraging economic growth.
South African Reserve Bank Governor Lesetja Kganyago is the third since the bank adopted a more transparent way of operating. Reuters/Siphiwe Sibeko

Clearing up the mystique of central banking

The South African Reserve Bank is a fine example of clear communication of the decision whether to hold, increase, or decrease interest rates. It also gives clear signals of future decisions.
The current policy of low interest rates should end within the next six months, says the RBA Shadow Board. AAP/Dan Himbrechts

Interest rates should fall no further: RBA Shadow Board

Last month's cash rate cut should not be repeated, say the majority of Reserve Bank Shadow Board members.
Australia’s rates should rise in the next six to 12 months, says the Shadow Reserve Bank. AAP Image/Dan Himbrechts

Still no clear direction for economy: RBA should hold

Economic data is giving a mixed picture on whether the Reserve Bank should cut rates, but on balance, RBA members should hold.
Uncertainty around Greece defaulting on debt repayments continues to dominate the global outlook. AAP/EPA/Aexandros Vlachos

Financial markets expect a cut, but RBA Shadow Board says hold

Financial markets have factored in a cut to Australia's cash rate, but economists - including the CAMA Shadow Board - aren't so sure.
The Shadow RBA Board recommends what the RBA should do, not predicts what it will do. Image sourced from www.shutterstock.com

The RBA cut rates, we said it shouldn’t. Here’s why.

I am a member of the “Shadow” RBA Board, which is made up of a collection of industry and academic economists. Just before every meeting of the real-world RBA Board, we announce our recommendations for…
There is a silver lining to the end of the mining boom. Image sourced from Shutterstock.com

Turning headwinds into tailwinds: the economy can correct course

What is the new normal for the Australian economy? With unemployment rising, commodity prices reaching new lows, and confidence subdued, is the Australian economy prepared to handle offshore headwinds…

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