OPINION: The Reserve Bank has dialled back the hawkishness but can’t fall too far behind the US Fed. And the Albanese government has to help.
The Reserve Bank of Australia is the first central bank to dial back the hawkishness in the face of global financial market turmoil and talk of economic recession. The 0.25 percentage point cash rate rise to 2.6 per cent follows four double-dose 0.5 percentage point increases in as many months.
. Yet the 5.5 per cent fall in combined capital city house prices since their peaks last year still leaves them 13.5 per cent higher than at the start of the pandemic, according to CoreLogic data. That was before they went on a two-year tear pumped up by the lowest interest rates in Australian history in response to a once-in-a-century event. For the first time,. In August, retail sales increased to being 25 per cent higher than just before the pandemic hit in early 2020.
The US Federal Reserve, like the RBA, was too late to respond to the global inflation outbreak, exacerbated by Russia’s invasion of Ukraine. Dr Lowe can’t get too far behind hisThe Australian Financial Review has argued, the Labor government should help by ensuring that the October 25 budget avoids adding any more short-term stimulus to the economy. It needs to douse the ACTU’s jobs summit push to bring back low-productivity multi-employer bargaining that also would drag out the inflation fight. And it needs to shore up Dr Lowe’s anti-inflation credibility by avoiding any repeat of Anthony Albanese’s warnings of central bank overreach.
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.
RBA hikes interest rates for sixth consecutive monthBREAKING: The Reserve Bank has lifted interest rates for a SIXTH consecutive month, increasing the cash rate by another 25 basis points to 2.6 per cent. FULL STORY: 9News
Read more »
'What it was like to be dehumanised': Anti-Chinese riots left a mark on Rani, but she turned it into artWendy Hartanti and Rani Pramesti reflect on their past and how it has inspired them to fight racism and help under-represented minority groups in Australia.
Read more »
Two simple early warning signs that could help you spot and fight dementia | 7NEWSAustralian researchers have made another breakthrough in the fight against dementia. Two easy to spot symptoms could help treat the disease, years before the onset of noticeable symptoms. 7NEWS
Read more »
S&P/ASX200: ASX rockets 3.8pc as RBA pivot soothes recession anxietyThe local sharemarket posted its best session in more than two years as the RBA’s shock move triggered a sharp fall in bond yields and the Aussie dollar.
Read more »
Global turmoil to test both Reserve Bank and Albanese governmentFrom claims of “moronic” policy in Britain to soaring borrowing costs at home, the RBA and the Albanese government face a testing few weeks.
Read more »