RBA gearing up for a run of blockbuster rate hikes
The Reserve Bank knows it will have to sharply revise up its inflation expectations as a prelude to a string of interest rate increases to tame prices.
The Reserve Bank knows it will have to sharply revise up its inflation expectations as a prelude to a string of interest rate increases to tame prices.
The RBA delivered a surprise 50-basis-point cash rate rise on Tuesday.
The RBA’s decision to speed up rate increases will send a tremor through the housing market, but the move will ultimately reduce the mortgage pain in the long term.
A group of economists including former board member Warwick McKibbin say the first RBA review in decades should be both independent and led by a foreign expert.
The RBA is unlikely to rule out 50-basis point moves in any given month, especially if the inflation outlook deteriorates further.
The pace of interest rate hikes could be breathtaking, sorely testing the stability of the country’s housing market.
Multiple hikes are likely over the rest of the year, as the Reserve Bank scrambles to shift policy for the first time since 2010.
A huge jump in business and labour costs in March explains why the Reserve Bank surprised some by suddenly opening the door to an interest rate rise in June.
It’s through the prism of an ongoing global pandemic and recent forecasts of double-digit unemployment that the federal budget must be viewed.
The Reserve Bank’s decision to cast a wider net in search for evidence of wage growth across the economy looks like a smart move, because the existing data just isn’t adding up.
Original URL: https://www.theaustralian.com.au/author/james-glynn/page/9