RBNZ set to send cautionary warning on rates
The Reserve Bank of New Zealand could upset the consensus that interest-rate cycles have peaked globally and cuts aren’t far away.
The Reserve Bank of New Zealand could upset the consensus that interest-rate cycles have peaked globally and cuts aren’t far away.
The central bank won’t wait until inflation is back in the target band before it starts to cut interest rates, according to board member Ian Harper.
There are signs of weakness emerging in the Australian economy.
Financial markets should be waking to the realisation that the RBA has ushered in a new era of hawkishness and potential rate hikes next year.
As Jim Chalmers moves to appoint Michele Bullock’s deputy in coming weeks, two names are the focus of market chatter – one an orthodox outsider.
The RBA’s decision this Tuesday as to whether to raise interest rates in response to third-quarter inflation is too close to call.
There’s no evidence of a developing wage-price spiral and long-term inflation expectations remain well-anchored, said Ian Harper, a member of the RBA’s interest-rate setting board.
Former Reserve Bank governor Ian Macfarlane says, far from being best practice, the federal government’s reforms of the RBA board are radical and untested anywhere in the world.
Philip Lowe’s experience over the past two years shows the reputational damage that can occur if the central bank appears to be out of step with opinions on the street.
RBA is sure to maintain its hawkish guidance for a while yet. But it could become one of the first central banks globally to start cutting.
Original URL: https://www.theaustralian.com.au/author/james-glynn/page/4