Monetary Policy

The RBA is unlikely to move on rates any time soon; what a NSW gold mine can tell us about future investment; there is no next China; be careful what you wish for, wage disclosure edition; and most climate policies don’t work.

The RBA’s conflicting statements on uncertainty and accountability expose a dangerous pattern of misguided forward guidance and unlearned lessons, threatening its credibility and effectiveness in controlling inflation.

As the Australian government attempts to manipulate inflation metrics through targeted spending, the RBA finds itself in a balancing act between economic stability and political pressure, echoing historical tensions between Nixon and the Fed.

A closer look at the recent market rout reveals underlying concerns about Australia’s economy, and that the RBA’s next moves will be as crucial as ever.

It’s probably too late in the cycle to hike rates any further when what’s desperately needed is tax, spending and regulatory reform.