banks.
Andrew Maccoll/Choice/AAP
Lower interest rates will only have the stimulatory effect required if they are passed on to borrowers.
Here come the cavalry?
shutterstock.com
The Bank of England has cut interest rates to a historic low of 0.25% and is injecting further rounds of quantitative easing.
Malcolm Turnbull announced the banks would now be regularly accountable to the parliament.
Mick Tsikas/AAP
Malcolm Turnbull has announced that the heads of Australia’s big four banks will be grilled annually by the House of Representatives economics committee.
Waiting for Superman.
Zoltan Gabor/Shutterstock
Britain’s central bank governor Mark Carney is like a prize fighter throwing his last, limp punches.
After the Reserve Bank cut the cash rate by 25 basis points to 1.5%, the four big banks said they would pass on only part of the reduction.
Paul Miller/AAP
Malcolm Turnbull has sternly told the banks they should pass on the whole of Tuesday’s rate cut - or their chief executives must explain why they are not doing so.
The RBA has cut rates to try and stimulate inflation and growth.
Dean Lewins/AAP
Economists are divided on whether the latest interest rate cut to 1.5% was needed, as the RBA tries to boost inflation and growth.
With Australia cutting and the US raising rates the Australian dollar looks likely to fall.
David Gray/Reuters
All economic data is pointing to disappointing global growth.
The good news is the post-Brexit market movements in high-yielding currencies have been relatively benign.
Jason Lee/Reuters
China will not be able to rescue Australia if another crisis hits.
Incoming RBA governor Philip Lowe
AAP/Alan Porritt
Incoming Reserve Bank governor Philip Lowe will face the challenges of rapid credit and asset prices growth.
Global uncertainties are unlikely to be resolved for some time.
Reuters/Kevin Coombs
The US has held off on raising rates, as the world waits to see which way the Brexit vote will go.
US Fed Chair Janet Yellen is worried about the slowdown in job creation.
Charles Mostoller/Reuters
Vital Signs is a weekly economic wrap from UNSW economics professor and Harvard PhD Richard Holden (@profholden). Vital Signs aims to contextualise weekly economic events and cut through the noise of the…
Sorry, but the glass is half empty.
Image sourced from shutterstock.com
GDP growth that doesn’t translate into income is no cause for celebration.
Manufacturing makes for good photo ops, but spending by Australian companies is no cause for celebration.
Lukas Coch/AAP
Worse than expected business investment in both manufacturing and mining provides another nod towards secular stagnation.
Ready to surge? Iceland has wrestled itself out of recession.
clement127/Flickr
One of the worst hit countries during the financial crisis has regained economic strength inside a gilded cage – to the extent that it can now step outside, melt it down and re-sell the gold.
Reuters/David Gray
There are some good reasons why the RBA should retain its flexibility in managing inflation.
Images Money
Brexit would throw up all manner of problems for the UK economy, including a rise in borrowing costs for homeowners.
Sydney investors can profit equally from purchasing apartments or houses.
Mick Tsikas/AAP
Herding behaviour is leading to excessive borrowing, further fuelling apartment prices, particularly in Sydney.
Business Council of Australia President Catherine Livingstone and Commonwealth Bank CEO Ian Narev will have to wait for the company tax cut they’ve been asking for.
Dan Himbrechts/AAP
We are all still learning the rules of the “secularly stagnant” global economy.
The Reserve Bank of Australia has cut interest rates to 1.75% as an election looms.
Reuters/Tim Wimborne
Fears of deflation have prompted the Reserve Bank of Australia to act on the eve of the federal budget.
rates.
Image sourced from Shutterstock.com
Watch out on budget day for how creative Treasury assumptions are on inflation.