@Michellegrattan and @amandadunn10 discuss the RBA's decision on interest rates, the Aston byelection result, the passing of First Nations leader Yunupingu, and TikTok bans
Thousands of banks failed in the Great Depression.
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Crises fueled by bank runs, starting with the Great Depression, have had something in common: Unexpected changes spur bank failures, followed by general panic and then large-scale economic distress.
Raising rates to fight inflation involves a time lag so current efforts to bring down prices won’t start having an impact until the next election is approaching.
A recession-free landing for the Fed may be harder now.
AP Photo/Alex Brandon
The Fed raised rates by a quarter-point – less aggressive than had been expected before the current banking crisis, but signaling inflation is still its focus.
Decision time: Jerome Powell, chair of the Federal Reserve.
The Photo Access/Alamy
The banking crisis has been caused by the interest rate rises, and further hikes were supposed to be a no no.
The U.S. Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on March 10, 2023, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis.
(AP Photo/Jeff Chiu)
The latest consumer prices report shows cost of living is still rising far above the Fed’s target. But don’t expect monetary policymakers to aggressively hike rates.
Signature Bank collapsed at lightning speed.
AP Photo/Yuki Iwamura
Lenders face a lot of risks, but two of them – interest rate and liquidity – were the main drivers of the sudden and rapid failure of Silicon Valley Bank and Signature Bank. That’s why more trouble may be ahead for the banking sector.
Reserve Bank of Australia governor Philip Lowe is unrepentant about the prospect of further interest-rate rises. In fact, he says there’s a risk the bank is not doing enough.
The Reserve Bank of Australia tips economic growth to slow, inflation to remain high, spending to stagnate, unemployment to increase and real wages to fall further.
Markets reacted positively to Fed Chair Powell’s acknowledging “disinflation” is happening.
AP Photo/Seth Wenig