The Reserve Bank of Australia has decided to leave the official cash rate unchanged at a record low of 2%, but said there was scope for a rate cut down the line.
Lending in a frothy property market has the potential to bring the economy unstuck.
Dan Himbrechts/AAP
RBA has no comparative advantage or good reason to regulate the Payments System. Australia already has a specialist agency to regulate industry – the ACCC.
Sharemarket volatility demonstrates global frothiness; nevertheless the case is weak for an interest rates cut.
AAP/Dan Peled
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.
ASIC Chairman Greg Medcraft wants to be able to charge banks that enable damaging corporate culture.
Dan Himbrechts/AAP
With rates on the way down the problem of runaway property investing has been left to the regulator APRA. But regulators should not be used as agents of short-term government policy.
Australia’s rates should rise in the next six to 12 months, says the Shadow Reserve Bank.
AAP Image/Dan Himbrechts
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…
Reserve Bank Governor Glenn Stevens has helped Treasurer Joe Hockey make his case for boosting the economy, but will it be enough?
Alan Porritt/AAP
Amy Auster, Australian Centre for Financial Studies
This week’s Reserve Bank interest rate move surprised virtually everyone, bringing the cash rate to 2.25%, yet another historic low. Despite Australian Treasurer Joe Hockey suggesting the rate cut means…
The less surprised markets are on interest rate moves the better.
Paul Miller/AAP
Though markets had somewhat priced in an Australian interest rate cut yesterday, many analysts and commentators were still left surprised. The rate had not been cut for 18 months. Over that period commentary…
The drop in oil prices, and consequently fuel costs, is driving down inflation and helping the Australian economy.
Andy Rain/EPA/AAP
The CAMA RBA Shadow Board is a project by the Centre for Applied Macroeconomic Analysis, based at the ANU, which asks industry and academic economists what interest rate the Reserve Bank of Australia should…
Puzzled by movements in the Aussie dollar? You’re not alone.
Image sourced from Shutterstock.com
The Australian dollar is a curious currency. It is the fifth most traded in the world and it gyrates pretty wildly – having traded below 48 US cents and above 110 in the decade or so from mid 2001 to 2011…
Dealing with housing bubbles can get messy for central banks.
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Australia’s central bank has formally flagged the use of macroprudential tools to address what it called “unbalanced” lending in its most recent Financial Stability Review. Loan-to-valuation ratio (LVR…
Double speak? It isn’t easy being a reserve banker.
Dan Peled/AAP
Last Tuesday the minutes of August’s Reserve Bank of Australia board meeting were released. Market participants speculated about what they would say, currency and bond markets responded to what they did…
Pressure for a rates hike is increasing.
AAP Image/Jane Dempster
The CAMA RBA Shadow Board is a project by the Centre for Applied Macroeconomic Analysis, based at the ANU, which asks industry and academic economists what interest rate the Reserve Bank of Australia should…