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Monetary policy

Today

Michele Bullock will chair the RBA board meeting on February 17-18.

Even small RBA rate cuts will fuel election spending

Any monetary easing this month will embolden more cash-burning by politicians, and therefore have important political and economic ramifications.

  • John Kehoe

This Month

Paul Bloxham, chief economist at HSBC.

Meet the most accurate economic forecaster of 2024

The Reserve Bank will cut the cash rate, according to Paul Bloxham, but don’t count on a big drop in borrowing costs as this cycle will be a short one.

  • Updated
  • Cecile Lefort

January

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What interest rate cuts will mean for your money

February is firming as the month that the Reserve Bank will cut the cash rate, which will have flow-on effects for shares, property and term deposits.

  • Michelle Bowes
Jerome Powell of the US Federal Reserve is hopeful that inflation will slow further this year.

US Fed cools rate cut talk as prospects of RBA easing balloon

If Michele Bullock holds the cash rate steady on February 18, it will represent the most counter-consensus decision since that of Glenn Stevens in April 2015.

  • Cecile Lefort
Michele Bullock.

Jerome Powell held. So should Michele Bullock

The US Federal Reserve held rates constant as it waited to see what policies Trump implements. The Reserve Bank should also wait until after our election and it knows what policies will be implemented here.

  • Updated
  • Ed Shann
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2/163 North Road sold at auction for $1.66 million in Eastwood, Saturday 16th of November 2024.

Major banks close to consensus on February interest rate cut call

Traders imply an 80 per cent chance of an interest rate cut next month to 4.1 per cent though the Reserve Bank could opt to wait for more data.

  • Cecile Lefort
Reserve Bank governor Michele Bullock and Treasurer Jim Chalmers.

February rate cut on the table, but not a done deal

There is a plausible reason to cut interest rates next month, but also a reasonable case to hold steady and await more information on the economy.

  • John Kehoe
US Fed chairman Jerome Powell.

Die-hard bond traders bet the next Fed move is higher, not lower

A blowout US jobs report has prompted a small corner of the bond market to start pricing in the possibility of rate hike in the US this year.

  • Liz Capo McCormick and Ye Xie
Gas prices increased 4.4 per cent last month. The national average price for a gallon of gasoline on Wednesday was $US3.09.

US core inflation slows, reviving hopes for lower rates

While headline CPI edged higher last month, core prices slowed, renewing bets that policymakers can keep lowering interest rates.

  • Christopher Rugaber
The spike in bond yields is unlikely to keep RBA governor Michele Bullock from finally cutting interest rates this year.

Bond turmoil won’t derail RBA’s rate cut plan

Despite bond yields spiking around the world, analysts say the Reserve Bank is still on track to cut interest rates this year.

  • Cecile Lefort
Reserve Bank governor Michele Bullock will need to factor in higher US inflation.

A February interest rate cut is a goer if RBA changes one thing

Should the Reserve Bank downwardly revise its 4.5 per cent estimate of full employment, the first reduction will happen in just a few weeks.

  • Stephen Miller
ANZ thinks a cut from the RBA next month is likely after fresh inflation data this week.

ANZ joins forecasters betting on February RBA rate cut

It and Commonwealth Bank agree that mortgage holders may finally get some relief next month, but they are the only two majors predicting that.

  • Joshua Peach and Cecile Lefort
RBA governor Michele Bullock.

Soft inflation data brings February rate cut into sight

Economists and markets are increasingly confident the RBA will cut the cash rate in February after price pressures cooled further in November.

  • Updated
  • Michael Read
RBA governor Michele Bullock.

RBA should cut rates and not be fooled by trimmed mean inflation

The actual inflation rate Australian consumers and businesses feel is now within the designated target range of 2-3 per cent. The RBA should not ignore this.

  • Craig Emerson

Why the falling $A could delay RBA rate cuts

The Aussie dollar hit a fresh two-year low, prompting strategists to raise the alarm that it will hold up inflation and may delay the first RBA rate cut of 2025.

  • Updated
  • Cecile Lefort
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Financial Review economist survey.

Reserve Bank rate cut hopes skirt federal election decider

Stubborn inflation, a tight jobs market and weak productivity thwarted interest rate relief in 2024. The Financial Review’s economist survey predicts that will change in May.

  • Cecile Lefort

December 2024

The Bank of England played Scrooge at its pre-Christmas meeting.

Bank of England pauses rate cuts as inflation picks up

The BoE did not join its rate-cutting peers in the US and Europe because, despite a flatlining economy, prices and wages have gathered pace.

  • Hans van Leeuwen
RBA governor Michele Bullock.

Traders dial up bets for February RBA rate cut

Money markets are slowly dialling up expectations for an early cut from the Reserve Bank in 2025. It’s a different story for New Zealand, which is now in a recession.

  • Updated
  • Cecile Lefort and Sarah Jones
US Federal Reserve chairman Jerome Powell was recast as The Grinch.

The Fed just killed the Santa rally

Jerome Powell gave investors a rate cut. But what sent Wall Street plunging was his message for 2025.

  • James Thomson
RBA Review panel member Renee Fry-McKibbin

Star pick for RBA board backed lower interest rates

Renee Fry-McKibbin was a monetary policy dove in 2022, according to Barrenjoey, backing in a low cash rate even as the central bank delivered supersized hikes.

  • Michael Read

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