Interest rates

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Reserve Bank governor Glenn Stevens condemned the “inability to find political agreement” on infrastructure. AAP/Dan Peled

Another rate cut possible due to weak economy: Stevens

Reserve Bank governor Glenn Stevens has left open the possibility of another rate cut, but warned against expecting monetary policy to do too much of the work in encouraging economic growth.
South African Reserve Bank Governor Lesetja Kganyago is the third since the bank adopted a more transparent way of operating. Reuters/Siphiwe Sibeko

Clearing up the mystique of central banking

The South African Reserve Bank is a fine example of clear communication of the decision whether to hold, increase, or decrease interest rates. It also gives clear signals of future decisions.
The current policy of low interest rates should end within the next six months, says the RBA Shadow Board. AAP/Dan Himbrechts

Interest rates should fall no further: RBA Shadow Board

Last month's cash rate cut should not be repeated, say the majority of Reserve Bank Shadow Board members.
Australia’s rates should rise in the next six to 12 months, says the Shadow Reserve Bank. AAP Image/Dan Himbrechts

Still no clear direction for economy: RBA should hold

Economic data is giving a mixed picture on whether the Reserve Bank should cut rates, but on balance, RBA members should hold.
Uncertainty around Greece defaulting on debt repayments continues to dominate the global outlook. AAP/EPA/Aexandros Vlachos

Financial markets expect a cut, but RBA Shadow Board says hold

Financial markets have factored in a cut to Australia's cash rate, but economists - including the CAMA Shadow Board - aren't so sure.
The Shadow RBA Board recommends what the RBA should do, not predicts what it will do. Image sourced from www.shutterstock.com

The RBA cut rates, we said it shouldn’t. Here’s why.

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…
There is a silver lining to the end of the mining boom. Image sourced from Shutterstock.com

Turning headwinds into tailwinds: the economy can correct course

What is the new normal for the Australian economy? With unemployment rising, commodity prices reaching new lows, and confidence subdued, is the Australian economy prepared to handle offshore headwinds…
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

How to multiply the rate cut impact and unshackle the economy

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

Quelle surprise? Why it’s good for markets to second-guess the RBA

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

Interest rates decision could boil down to oil: RBA Shadow Board

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…
Will it put Russia in the black or red? Nata789 via Shutterstock

Huge Russian rate hike plays roulette with the economy

Russia’s Central Bank has raised its key interest rate from 10.5% to 17% in an emergency move that is designed to halt the ongoing collapse of the rouble, which has accelerated in recent weeks. The dramatic…
The People’s Bank of China recently cut interest rates to stimulate the economy. But it probably won’t fix the real problem. Reuters

China’s interest rate cut is mixed blessing for the world economy

China’s central bank surprised most observers last month when it announced its first interest rate cut in more than two years. The move is intended to bolster growth in the world’s second-largest economy…
It’s been a steady-as-she-goes year for Reserve Bank Governor Glenn Stevens. Alan Porritt/AAP

Rates tipped to stay on hold in final RBA decision for 2014

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…

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