Australia has more to fear than most countries from a global trade and currency war. All eyes will be on the Reserve Bank governor Friday as he attempts to outline what might happen.
If you’re going to stimulate the economy, it’s wise not to wait.
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A bold government would have delivered stages one, two and three of the tax cuts at once. Boldness is what we need.
Historically those nominated to the US Federal Reserve board have had distinguished credentials. Donald Trump favours nominees that agree with him.
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Peter Martin, Crawford School of Public Policy, Australian National University
Philip Lowe is on the cusp of permanently changing Australia. He stands a good chance of being one of the best governors since the first, who ushered in the goal of full employment.
Two cuts in a row, and a good chance of more to come.
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Peter Martin, Crawford School of Public Policy, Australian National University
The Reserve Bank cut interest rates on Tuesday because we weren’t spending or pushing up prices at the rate it wanted. On Wednesday we might find things are worse than it thought.
The prudential regulator has a history of doing too much, too late.
Inflation has barely been within the Governor Philip Lowe’s target band his entire time in office. Zero inflation means he should cut now, before the election.
Philip Lowe tells the Press Club on Wednesday there’s now an even-money chance rates will be cut.
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As with economic growth and wages, the RBA’s response seems to involve crossing as many fingers and toes as possible and publicly proclaiming that things are looking good.
The air may fizzle out of the Australian balloon, or it may burst violently.
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