Opinion

The Reserve Bank of Australia’s credibility is shot

The central bank’s hawkish pivot has no credibility given it is not willing to do the bare minimum and raise interest rates in line with global peers.

Christopher JoyeColumnist

Aug 9, 2024 – 2.48pm

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Perhaps the single most important driver of the market volatility of late has been investors junking the soft-landing narrative and embracing the idea that we might suffer a hard-landing.

Yes, there has been the unwinding of the “carry trade”, the rise of Kamala Harris, and geopolitical ructions, but what has really spooked investors is that they may be facing a recession.

Christopher Joye is a portfolio manager with Coolabah Capital, which invests in securities, including those discussed in his column.