Six charts explain the Australian economy. Three of the most disturbing show living standards going backwards, productivity collapsing and household saving falling to a 15-year low.
Former Reserve Bank and Treasury chiefs have gone on to run Westpac, the National Australia Bank, the ANZ, and Macquarie Bank. It makes regulating those banks hard.
The Treasury and RBA believe Australia’s sustainable rate of unemployment is above 4%, but Australia’s leading economists think 3.75% is possible long-term, and have ideas about how to achieve it.
Inflation has slipped faster than the Reserve Bank thought it would, and the underlying rate is down to 5.4%. The bank is likely to tread cautiously from here on.
Even a week ago we couldn’t have predicted this. But after good news from the US, our Reserve Bank now has a chance to cement low unemployment while controlling inflation – without more rate rises.
The government has announced who Philip Lowe's successor is, deputy governor Michele Bullock - She will be the first woman to hold the position.
AAP Image/Lukas Coch
Although she has been with the bank four decades, the past two have been in areas remote from the setting of interest rates, meaning she won’t feel compelled to defend the mistakes of the past.
The government has appointed Michele Bullock the new governor of the Reserve Bank – the first woman to occupy the post. Bullock, currently deputy governor, replaces Philip Lowe, who has weathered strong…
It is generally expected Lowe will be replaced, when Treasurer Jim Chalmers takes his recommendation to cabinet
Australian home borrowers are experiencing much, much more interest rate pain than borrowers in New Zealand, Canada, the UK or US – for one simple reason.
Unless we boost productivity, wages growth could sink back to 2-3%. The Productivity Commission has some good solutions – and we’d argue redesigning the Stage 3 tax cuts should be on the list too.
Of all the things we can do to boost productivity, working harder is one of the least likely to make a difference.
Chalmers is in the driver’s seat as another Labor government copes with an economic crisis – very different from the GFC, but similar in being driven by circumstances not of the government’s making.
The Reserve Bank governor has only three months left in the job and he isn’t yet sure inflation is on the way down.
In this podcast, @michellegrattan and @amandadunn10 discuss the PwC scandal, Mark McGowans resignation, the PMs Singapore trip, and the inflation figures from the ABS
Treasurer Jim Chalmers with the report of the independent review of the Reserve Bank.
The Reserve Bank was made subservient to the government for a reason. Chalmers out to think carefully about abandoning the right to overrule it.
Bianca De Marchi/AAP
In this podcast, @michellegrattan and @amandadunn10 discuss another interest rate rise form the RBA, Labor's war on vaping and an increase to the tobacco tax, and the likely boost to JobSeeker for people aged 55 and over.
Just as we have the country’s smartest legal minds on the High Court and our best health practitioners setting vaccine policy, the review wants the best economists to set monetary policy.
These include the establishment of a separate Monetary Policy Board and Governance Board, aimed at making both decision-making and governance arrangements as effective as possible
Bianca De Marchi/AAP
@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