The Reserve Bank’s Term Funding Facility was meant to support lending during COVID. Instead the funds might be ending up in the accounts of bank shareholders.
Australia faces economic problems down the road if three big, structural reform areas — housing affordability, the tax mix, and decarbonisation — are not addressed.
The unemployment decline isn’t as impressive as it first appears, and wages growth remains sluggish.
The independence of Australia’s central bank doesn’t make it infallible. It should welcome peer review.
The last time Australia’s unemployment rate was below 5% was June 2011.
The Reserve Bank governor’s ‘forward guidance’ risks him not adapting to changing circumstances, or undermining his credibility.
The Reserve Bank of Australia is ready to taper off the ‘unconventional’ monetary policy measures introduced in response to the COVID-19 crisis.
The Bank of International Settlements says technology and globalisation are the main causes of increasing inequality.
The RBA shouldn’t be spooked into raising interest rates, but the prospect of inflation in the next few years is an important consideration for central banks around the world.
Australia’s official unemployment rate falling to 5.5% is enough to make a treasurer dance. But we shouldn’t get too carried away.
The bank’s decision to focus on just one thing puts the onus on the government to take action to rein in home prices.
Cash holdings jumped 17% during the crisis, most of them in the form of $50 and $100 notes.
The New Zealand subsidiaries of major Australian banks might be highly profitable, but realising their true sale value can still be a challenge.
Ross Garnaut’s new book Reset argues for much bolder approach to employment, debt, interest rates and basic income than is widely envisaged.
Our continued recovery depends on how much we spend and how quickly we get the vaccine.
Governor Lowe believes the unemployment rate will need to fall well below 5% before inflation climbs to the point where he needs to jack up rates.
If the Reserve Bank had acted as it usually does, the cash rate would have dipped briefly negative in August.
The Reserve Bank should stick to its guns. Australia’s economy still needs all the support it can get.
The government has done a good job so far, but it will have to direct future support to the Australians most likely to spend.
The most important change is a guarantee about the future, one the RBA can be held to.