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Monetary policy

Today

RBA governor Michele Bullock’s surprised markets by suggesting rate hikes.

Markets bet on several RBA rate rises in 2026

RBA governor Michele Bullock has triggered a huge repricing of rate expectations. Financial markets are now fully priced for a cash rate increase by May next year.

Yesterday

RBA governor Michele Bullock on Tuesday.

RBA is worried it cut interest rates too far

Michele Bullock is ringing the alarm on “upside” inflation risks and openly talking about the plausibility of raising interest rates next year.

Reserve Bank governor Michele Bullock says rates will not move for some time.

RBA is caught in Ray Dalio’s doom loop

The Reserve Bank says the Australian economy’s delicate balance means setting rates only gets harder. But there’s a bigger global story at play here.

The RBA has held the cash rate at 3.6 per cent, noting that if the pick-up in economic momentum continues it could add to capacity pressures.

Bullock puts nation on notice about rate rises

The decision to keep interest rates unchanged was expected by economists, but was overshadowed by a more wary tone on inflation from Bullock.

This Month

US Federal Reserve chairman Jerome Powell has given Reserve Bank of Australia governor Michele Bullock plenty to think about.

ASX to fall on rate rise fears even as Wall Street cheers Fed cuts

Shares will open lower on Monday as traders ramp up bets the RBA will lift rates next year. Meanwhile, US stocks are near records on rate cut expectations.

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RBA governor Michele Bullock. One full interest rate has been pencilled in for the end of 2026

Politicians must cut spending to avoid interest rate increases

The challenge for the monetary policy mandarins is that politicians are pumping the economy full of more and more unproductive cash, driving inflation higher.

Bond markets dialled up bets of a rate hike in Australia.

RBA rate hike bets jump amid global bond sell-off

The possibility of a rate increase in Japan has triggered a rout in bond markets around the world.

November

A hot inflation report has prompted Barrenjoey to forecast a rate hike by May 2026.

RBA rate hikes are coming next year after red-hot inflation

Economists and the bond market have flipped on the outlook for interest rates in 2026 after a “shocker” of an inflation report that wrong-footed everyone.

To some, like Jamie Dimon, it’s a question of not if, but when.

Jamie Dimon is right. Alarm bells are ringing about the next GFC

The changes under way in the global financial system will be more consequential than the distortions wrought by Donald Trump.

Reserve Bank governor Michele Bullock and Treasurer Jim Chalmers.

IMF calls for Chalmers to give up RBA override power

The IMF says removing the veto power will strengthen the Reserve Bank’s independence, consistent with a key recommendation of the RBA review.

Plunging tech stocks pushed Wall Street to its sharpest fall in a month.

ASX slumps 1.4pc as fading rate cut hopes smash tech, bitcoin

Investors are fleeing some of the hottest pockets of financial markets amid doubts about monetary easing in the US and Australia.

RBA debuty governor Andrew Hauser said that the direction of the economy was uncertain, and that the RBA was facing an “unusual challenge”.

If you’re waiting for another rate cut, read this first

The lower speed limit means the economy cannot afford as much income growth for people, and that living standards will increase by less than in the past.

The inflation spike and uptick in joblessness circle back to the fundamental supply-side problem at the heart of Australia’s economic malaise over the past decade: low productivity growth.

Economy’s flashing lights should drive Labor’s second-term agenda

Governments of both persuasions have dragged their feet on the measures needed to efficiently expand the economy, grow real wages and boost living standards.

RBA debuty governor Andrew Hauser said that the direction of the economy was uncertain, and that the RBA was facing an “unusual challenge”.

RBA warns economy may be ‘boxed in’ by low productivity

Deputy governor Andrew Hauser outlined two different pathways for the economy, and economists are divided on which is more likely.

The US Capitol has entered its 40th day of shutdown on Sunday, its longest in American history.

ASX to rise but investors brace for extended US shutdown uncertainty

Although futures point to a positive start for the ASX 200 on Monday, a lot is riding on a budget deal being struck in Washington.

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The Treasurer’s stewardship of the central bank review process showed how reform can be both careful and bold. The next logical step is to extend that same discipline to the RBA’s financial foundations.

The RBA’s balance sheet could take until 2040s to heal

A single decision by the treasurer to restore the central bank’s capital would ensure the RBA is truly a bank “fit for the future”.

Shoppers in Pitt Street Mall in Sydney. Inflation was far higher than the central bank expected, leading to fears rates would not be cut.

The RBA’s pessimism hasn’t swayed these economists from rate cut calls

The central bank painted a bleak picture of higher inflation as it cautioned against further easing. Plenty of people in the market disagree with its forecasts.

RBA governor Michele Bullock doesn’t want to provide forward guidance, but comments on jobs and inflation suggest rates will be higher for longer.

Why the RBA is on alert but not alarmed about its big inflation miss

The Reserve Bank won’t be cutting interest rates any time soon after one of its worst forecasting errors on inflation since the 1990s.

Michele Bullock’s RBA says house prices have already increased more than expected.

House prices, tradie shortages, banks torpedo rate cuts

Of all the examples Michele Bullock could have given to describe how capacity in the economy works, she chose a tradesperson. What are the chances?

After inflation came in hotter than expected last week, reaching the top of the RBA’s target band, the central bank has held interest rates at 3.6 per cent.

Bullock flags end to rate cut cycle amid high inflation, jobless spike

The Reserve Bank decision comes after “materially higher” inflation and the jobless rate both exceeded its expectations for the September quarter.

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