RBA policy meeting to be tense tightrope walk
Financial markets are already pricing in a rate cut next week, but the reality is the discussion around the RBA table will be tense, uneasy and more finely balanced than most understand.
Financial markets are already pricing in a rate cut next week, but the reality is the discussion around the RBA table will be tense, uneasy and more finely balanced than most understand.
For a number of years, the Reserve Bank has been operating under a cloud of self-doubt that it should work to throw off.
The board changes suggest Treasurer Jim Chalmers has opted for tinkering rather than a complete overhaul.
As the Reserve Bank of Australia prepares to move forward under a new dual-board structure from early next year, there’s far more at stake than meets the eye.
Next year’s federal elections will likely hinge on the economy and living costs.
While most economists are optimistic that the RBA will ease the load on homebuyers by February, money-market traders feel that won’t happen until as far away as August.
Even news that headline inflation is back within the 2-3 per cent target band won’t be enough for the RBA to cut rates.
The Reserve Bank of New Zealand lowered the official cash rate to 4.75 per cent.
The government’s push to reform the RBA’s policy-setting board is likely dead in the water, and few will mourn its passing.
Although reforming the interest-rate setting board of the RBA has stalled, a former senior manager says there’s still a good reason to reignite the process.
Original URL: https://www.theaustralian.com.au/author/james-glynn