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Monetary policy

Yesterday

Trade tariffs typically push up inflation. But markets are expecting rates to be cut as global growth slows.

Traders eye up to five RBA rate cuts amid market turmoil

The Aussie tumbled below US60¢, its lowest level since early in the COVID-19 pandemic, as the bond market ramped up expectations of bigger interest rate moves.

The highest echelons of America’s economic bureaucracy thought it was a good idea to slap tariffs on penguins and used a stunningly puerile “formula” to justify that and other tariff measures.

Trump’s idiocy will put a 2 in front of RBA cash rate by end of year

Retaliatory tariffs are a supply shock that will not only see the global economy lurch into a deep recession but will do so with a near-term inflationary bias.

This Month

Earlier this month, RBA governor Michele Bullock said it was too early to judge the potential implications of Trump’s win on the Australian economy.

Trump tariffs to force RBA to cut rates up to four times in 2025

Economists predict the trade war will cause a global slowdown that will impact the Australian economy, with markets increasingly certain of a rate reduction in May.

Reserve Bank Meeting 1 April

More rate cuts? That would have to be an April Fool’s joke

The inflation fighter deep inside Michele Bullock has resurfaced, and the RBA has reminded everyone that restoring price stability is the main game.

RBA governor Michele Bullock

RBA won’t join desperate guessing game

Central banks are as much on edge as markets, as the world waits to learn the impact and extent of Donald Trump’s tariffs. Caution reigns at the Reserve Bank.

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Reserve Bank of Australia governor Michele Bullock is trying to thread the needle.

The ‘credit cycle that never was’ will limit RBA rate cuts

After the pain of 13 hikes, there is still a real question as to how much more support the central bank can really provide in this easing phase.

The Reserve Bank held interest rates at 4.1 per cent.

RBA has interest rate trigger for Trump trade war

The Reserve Bank of Australia isn’t quite sure what impact Donald Trump’s imminent next round of tariffs will have on inflation, but it is ready to act.

March

Michele Bullock, governor, Reserve Bank of Australia, is in no rush to cut interest rates again.

Traders temper bets on RBA rate cuts after pre-election budget

Bond investors are concerned about Australia’s spending plans as the government’s financing arm unveiled the biggest annual funding program outside the pandemic.

Bank of England governor Andrew Bailey.

Bank of England leaves rates unchanged at 4.5pc as inflation stays high

UK inflation remains at 3 per cent, above the bank’s 2 per cent target and is set to push higher in the coming months.

Federal Reserve Chair Jerome Powell  highlighted “unusually elevated” uncertainty.

Investors cheer as traders dial up Fed rate cut bets

Equities rallied around the world as bond markets priced in the possibility of two rate cuts from US Federal Reserve this year and in Australia.

President Donald Trump has unleashed a barrage of tariffs and plans to impose more on April 2.

US inflation eases, as economists await impact from Trump’s tariffs

Analysts anticipate that the president’s escalating trade wars will drive up prices on a range of goods from food to clothing in the coming months.

Inside the sudden exit of a central bank governor

The aggressively nationalist Kiwi central bank boss Adrian Orr deliberately pushed New Zealand into recession. Australian bankers hope his sudden exit will give them some relief.

Christine Lagarde, president of the European Central Bank (ECB), wearing a necklace with a slogan which read reads “In Charge” at a rates decision news conference in Frankfurt, Germany in June last year.

When central banks hit Instagram, cue the cringe

When it comes to explaining rate decisions and the state of the economy on Instagram, the savviest central banks hand the reins to younger staff

Keynote from Andrew Hauser, Deputy Governor, Reserve Bank of Australia.

The charts that underlie the RBA’s inflation fear

There are two big risks dominating the inflation outlook, central bank deputy governor Andrew Hauser told the Financial Review Business Summit.

RBA deputy governor Andrew Hauser said the central bank was convinced to cut rates by one key chart presented to the board.

The secret chart the RBA used to justify its latest rate cut

The central bank’s deputy governor revealed a previously secret graph that showed inflation would have fallen below target if rates were paused for longer.

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RBA governor Michele Bullock.

Repair fiscal policy to stop politicians fighting RBA’s monetary policy

Political ill-discipline has produced the biggest spending increase for a first-time government since the Whitlam era 50 years ago.

February

Reserve Bank governor Michele Bullock and Treasurer Jim Chalmers.

Chalmers has ‘damaged’ RBA independence

Jim Chalmers’ pressure on Reserve Bank governors Michele Bullock and Philip Lowe is “highly reprehensible” and has damaged the independence of the RBA, Roger Corbett and Angus Taylor say.

Reserve Bank governor Michele Bullock addresses the media on Tuesday.

Don’t believe the doomsayers – more rate cuts are on the way

The bond market is pricing in two to three rate cuts this year and history suggests it always tends to get it right.

RBA governor Michele Bullock.

RBA rates call will fuel inflation and prolong cost-of-living crisis

The board has broken the sacred rule of modern central banking: do not pump prime the economy before an election, particularly when there will be a cost to all Australians.

Michele Bullock.

The four charts that show how the RBA board and staff were split

The Reserve Bank cut the cash rate, but the extent to which it tempered enthusiasm for more reductions brings into question why the board chose to move at all.

Original URL: https://www.afr.com/topic/monetary-policy-5zu