cash rate

Latest news and analysis on cash rate

Macro

RBA: "no evidence that monetary policy overall is more potent in Australia"

A senior RBA official has acknowledged that there is "no evidence that monetary policy ... is more potent in Australia than ".
Kieran Davies
Coolabah Capital
Macro

RBA: Policy not as tight as peers, which is why inflation is higher

The RBA has highlighted how policy is less tight than other countries, such that inflation is higher than in nearly all its peers.
Kieran Davies
Coolabah Capital
Macro

The room to cut interest rates across countries

The RBA never raised rates by as much as other countries, so it has relatively less scope to cut them in a soft economic landing.
Kieran Davies
Coolabah Capital
Macro

Persistent excess demand vs returning inflation to target

The RBA optimistically expects inflation will return to target without spare capacity emerging in the economy.
Kieran Davies
Coolabah Capital
Macro

Financial stability & its potential bearing on eventual RBA rate cuts

The RBA is alert to the possibility that eventual rate cuts might spur risky borrowing by already-heavily-indebted households.
Kieran Davies
Coolabah Capital
Macro

The public sector’s role in propping up growth and jobs

The public sector has accounted for all the growth in GDP over the past year and made the largest contribution to strong jobs growth.
Kieran Davies
Coolabah Capital
Macro

RBA optimism on the economic outlook to be tested

History suggests that the RBA finds it very hard to fine-tune the economy.
Kieran Davies
Coolabah Capital
Macro

Fed policy, the Sahm rule and the risk of recession

Rising unemployment has almost reached the "Sahm rule" threshold that has historically been a useful guide to US recessions.
Kieran Davies
Coolabah Capital
Macro

RBNZ starts to set the stage for rate cuts this year

Continued economic weakness has seen the RBNZ open the door for considering rate cuts this year.
Kieran Davies
Coolabah Capital
Macro

The RBA should hike in August

Underlying inflation is proving more persistent than the RBA had expected.
Kieran Davies
Coolabah Capital
Macro

Policy rules point to central banks diverging on rates

A policy rule still points to a slow/shallow rate cut cycle in the US, steady rate cuts in the EA, and that the RBA should hiked a bit more.
Kieran Davies
Coolabah Capital
Macro

A more resilient consumer and excess savings

The consumer looks in better shape than the RBA had feared, with spending revised up as households tap still-substantial excess savings.
Kieran Davies
Coolabah Capital
Macro

Signal and noise in the April unemployment rate

Unemployment has picked up, but the labour market remains tight with the RBA raising its estimate of the NAIRU.
Kieran Davies
Coolabah Capital
Macro

Conflicting messages on policy from the RBA

The RBA thinks rates are at the right level to to return inflation to target, but discussed hiking today and warned on upside risks.
Kieran Davies
Coolabah Capital
Macro

Higher inflation should see the RBA revise up its outlook

History suggests that there is the risk that the RBA revises up its longer term forecasts of inflation.
Kieran Davies
Coolabah Capital
Macro

A spike in unemployment on flat employment as hiring patterns change

A large spike in Australian unemployment and flat employment looks affected by changing hiring patterns.
Kieran Davies
Coolabah Capital
Macro

Policy rules and risks to current market pricing of interest rates

CCI used policy rules to judge the risks around market pricing of rates in the US, euro area and Australia.
Kieran Davies
Coolabah Capital
Macro

National income rebounds and companies keep hiring

Business turnover rebounded in Q3, while payroll jobs continue to trend higher.
Kieran Davies
Coolabah Capital
Macro

Markets are less sure the Fed and RBA will hit their inflation targets

Market measures of expected inflation have picked up, which is unusual this late in the cycle.
Kieran Davies
Coolabah Capital
Macro

A broad recovery in world house prices

House prices are buoyant ahead of an expected rise in unemployment
Kieran Davies
Coolabah Capital
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