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Articles on Reserve Bank of Australia

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Some commentators have suggested that the RBA should intervene in currency markets to tame the Australian dollar. But is this a wise move? betta design

Should the RBA act on the high Australian dollar? Experts respond

Graeme Wells, University of Tasmania; Richard Heaney, The University of Western Australia, and Shaun Vahey, Australian National University

As foreign central banks continue to park their money in our triple-A rated bonds, the Australian dollar continues its inevitable ascent. The dollar traded as high as US106.03¢ after the RBA left the interest…
To ensure a sound financial system, policymakers should balance the twin objectives of stability and competition.

Is competition crucial to the health of the financial sector? You can bank on it

Ian Harper, The University of Melbourne

Reactions to my call this week for another inquiry into Australia’s financial system have been mixed. Most commentators seem to accept that there’s logic in having another inquiry, even if some think that…
The reserve bank should hold the cash rate steady tomorrow – but CAMA’s Shadow board members see greater uncertainty long term. AAP

RBA should hold rates, but longer term uncertain

Shaun Vahey, Australian National University

_The Conversation, in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA), presents the monthly findings of the Shadow Board, prior to the meeting of the Reserve Bank of Australia Board…
With the rest of the world mired in economic crises, it seems Australia is the place for foreign central banks to park their assets. Krug6

The boom has made the dollar a dazzler, but Australia is hardly a safe haven

Timo Henckel, Australian National University

Central banks everywhere - from Russia to the Czech Republic - are piling into Australian-dollar-denominated assets. This has limited the fall of the Australian dollar to around 3% from its peak even though…
The Reserve Bank of Australia should keep interest rates on hold, say a group of influential economists. AAP

Keep rates on hold, says CAMA shadow board

Shaun Vahey, Australian National University

_The Conversation, in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA), will present the monthly findings of the Shadow Board, a day before the Reserve Bank of Australia Board meets…
Given the RBA’s decision to slash the cash rate by 50 basis points, it’s hard to justify Treasurer Wayne Swan’s pursuit of a budget surplus. AAP

Cutting rates, then tightening fiscal policy? Trying to make sense of the quest for a surplus

Graham White, University of Sydney

The former Governor of the Reserve Bank, Bernie Fraser, hit the nail on the head the other night when he found it absurd that the Reserve Bank could be reducing interest rates one day, while a week later…
RBA governor Glenn Stevens will no doubt be portrayed in a flattering light if the board cuts rates today: but not everyone is a winner. AAP

Not everyone wins when interest rates fall

Liam Lenten, La Trobe University

UPDATE: The Reserve Bank of Australia has cut Australia’s official cash rate by a larger-than-expected 50 basis points, to 3.75%. In the likely event that the Reserve Bank Board chooses to ease the target…
Publishing long-term interest rate projections can allow the Reserve Bank to operate with greater transparency. AAP

A route to greater transparency and independence for the RBA

Shaun Vahey, Australian National University and Liz Wakerly, Australian National University

Today, all eyes will be on the Reserve Bank amid speculation that the cash rate will be eased by at least 25 basis points. The RBA has often faced pressure from politicians and business leaders to reduce…
Political, rather than economic: economists say there is no direct link to surpluses and lower interest rates. AAP

Can surpluses lead to lower interest rates?

Graham White, University of Sydney; Sinclair Davidson, RMIT University, and Tim Battin, University of New England

The Federal Government is continuing its pre-budget surplus sell, with Prime Minister Julia Gillard directly linking its plans to return the budget to surplus to lower interest rates. Gillard will use…
Moves by ANZ last week to hike their interest rates was criticised by Treasurer Wayne Swan: but historically, banks have often been at odds with governments. AAP

Never mind the miners: here’s the bankers

Tim Harcourt, UNSW Sydney

In Australia’s economic history, there always been tension between Labor and the banks. My grandfather was an adviser to wartime Labor Treasurer and Prime Minister, Joseph Benedict Chifley, better known…
Contrary to a report published by French bank Societe Generale, Reserve Bank Governor Glenn Stevens confirmed that funding costs for Australian banks had increased. AAP

Evidence shows banks’ funding stance on interest rates was correct

Nigel Morkel-Kingsbury, Monash University

Predicting the setting for the banks’ standard variable housing loan interest rate used to be simple. Before the subprime crisis in the US and the subsequent GFC, the variable rate was simply the RBA target…
Reserve Bank of Australia Governor Glenn Stevens: knowing how individuals board members think is important. AAP

Shadowing the RBA: uncertainty matters when it comes to interest rates

Shaun Vahey, Australian National University

Monetary policymaking is imperfect. When board members of a central bank such as the Reserve Bank of Australia sit down to set the appropriate target cash rate each month - as they did this week - there…
ANZ and NAB have cut their mortgage rates. Will the other two major banks follow suit? AAP

Are banks gouging by not passing on interest rate cut?

Dianne Thomson, Deakin University

ANZ and National Australia Bank have passed on the Reserve Bank of Australia’s 0.25% interest rate cut to mortgage holders, lowering their standard variable rates. Treasurer Wayne Swan called on the big…
Banks increasingly choose not to follow the lead of Reserve Bank of Australia Governor Glenn Stevens on interest rates. AAP

Should banks be compelled to pass on interest rate cuts?

Kevin Davis, Australian Centre for Financial Studies and Josh Fear, University of Canberra

As Reserve Bank of Australia board members gather today to ponder Australia’s cash rate, financial markets are having a bet each way the RBA will cut rates amid the release of data reflecting a softening…
Can we expect more interest rate cuts this year?

Interest rate cut: experts respond

Steve Keen, Western Sydney University and Adrian Pagan, University of Sydney

The Reserve Bank of Australia has cut the official cash interest rate by 25 basis points, from 4.75% to 4.5%, in a move matching most economists’ expectations. It was the first cut since April 2009. Westpac…
Banks such as NAB are reportedly positioning themselves to use covered bonds to raise funds.

Banks want covered bonds, but could taxpayers be left with the risk?

Milind Sathye, University of Canberra

Australian banks are positioning themselves to take advantage of new laws allowing them to use the new instrument of covered bonds to raise funds. Our large banks especially have enthusiastically welcomed…
Glenn Stevens has acknowledged the impact of deleveraging on Australia’s economy. AAP

On High Noon Tuesday at the RBA Corral, can we expect a rate rise?

Steve Keen, Western Sydney University

I have a hunch that the RBA will follow its conventional “neoclassical” models and raise rates this afternoon, even though the economy is locked in “two speed” mode, and the global economy is racked by…

Related Topics

  1. Australian economy
  2. Cash rate
  3. Consumer price index (CPI)
  4. Inflation
  5. Interest rates
  6. Monetary policy
  7. Philip Lowe
  8. RBA
  9. Shadow Reserve Bank
  10. US Federal Reserve

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