OPINION: The RBA is not infallible, and the Prime Minister cannot remain silent if its powerful officials are wreaking harm with bad calls.
This is a tale of high priests and Trappist monks. It is written that the high priests of the Reserve Bank at Martin Place shall be spared interference from elected philistines.
Albanese followed up by pointing out that the Reserve Bank had committed in 2020 to keeping the cash rate at just 0.1 per cent until 2024 – but began increasing rates in 2022.From 2015 until the pestilence of COVID-19 arrived, the Reserve Bank’s interest rate decisions led to an inflation rate below its 2-3 per cent target. At the same time, as evidenced by weak wages growth, full employment wasn’t achieved either.
Then deputy governor, Guy Debelle, acknowledged this in 2021, saying the higher Australian government long-term bond rate “was contributing to a higher exchange rate, which was restraining the recovery in the Australian economy”. This sharp tightening of monetary policy is being justified by rapidly rising inflation and fears of a 1970s-style wage-price explosion.Commonwealth Bank data, based not on prophecies but on actual wages paid into about 300,000 bank accounts, suggests wages are rising by around 2.5 per cent per annum – hardly an explosion.
The International Monetary Fund has downgraded its growth forecasts for Australia, the region and the world, while the US has recorded its second consecutive negative quarter of economic growth – contrary to the expectations of theAustralia’s inflation rate might turn negative next year as petrol prices fall and supply-chain pressures ease.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX to open higher ahead of another RBA rate riseFinancial markets and economists are convinced the RBA will deliver another 0.5 percentage point increase, bringing the cash rate to 1.85 per cent from 1.35 per cent at Tuesday’s policy meeting.
Read more »
ASX to open higher before another RBA rate riseFinancial markets and economists are convinced the RBA will deliver another 0.5 percentage point increase, bringing the cash rate to 1.85 per cent from 1.35 per cent at Tuesday’s policy meeting.
Read more »
RBA rate rises tipped to slow bank mortgage growthAs interest rates climb, analysts predict the big banks will face slower growth in their lucrative mortgage portfolios | clancyyeates
Read more »
Markets lower RBA peak cash rate to 3pcThey have significantly wound back pricing on the expected peak Reserve Bank of Australia cash rate, down from as much as 4.5 per cent tipped less than two months ago.
Read more »
RBA must not repeat the mistakes of two decades agoOPINION: Interest rates have to rise. But central banks must ask themselves again if they are targeting the right aspects of inflation for a changing era.
Read more »
Voice to Parliament referendum to be ‘a high hurdle to clear’
Read more »