RBA cash rate

[divs4ever]

Biggest problem with all these issues is the limited attention span of the public and the media’s fuelling of it.

It’s not an issue that can be covered in 30 seconds and which has a simple answer but sadly that’s what many do, they just aren’t interested in publishing or reading complex discussion.

Same happens with everything. Mainstream media is far, far too simplified.

several decades ago ( when i was barely out of my teens ) my social circle used to call the television the 'idiot box '

unfortunately the masses didn't extend that logic to the folks consume a lot of the output

even shows like the 'news ' are often advertorials or a segway into the commercial break to follow

 

[Value Collector]

several decades ago ( when i was barely out of my teens ) my social circle used to call the television the 'idiot box '

unfortunately the masses didn't extend that logic to the folks consume a lot of the output

even shows like the 'news ' are often advertorials or a segway into the commercial break to follow

The good thing these days is you have much more choice in the content you watch, and don’t have to rely on the 3 pre programmed channels.

With Netflix, YouTube, etc etc you can definately “idiot” content, but there is a lot of educational stuff for curious minds too.

 

[farmerge]

Isn't it a pity that the so-called "smart" people in charge weren't on the ball a bit better than they are.

 

[moXJO]

RBA will err to the side of jacking up rates too much to deal with inflation. Stimulus is generally a fast fix to a economy busted by rate rises. Out of control inflation on the other hand can't be fixed as easy.

 

[Value Collector]

RBA will err to the side of jacking up rates too much to deal with inflation. Stimulus is generally a fast fix to an economy busted by rate rises. Out of control inflation on the other hand can't be fixed as easy.

The brakes tend to work better than the accelerator in my opinion, you have to be careful not to apply them for to long, or the momentum is very hard to get back.

 

[divs4ever]

my understanding of traditional inflation control ( if it in fact exists ) is official lending rates must rise above official CPI rises

( this of course is only notional given the extensive massaging on 'the official CPI ' rises )

so grab the 'official CPI rate ' and compare it the the current RBA and add a couple of handfuls of salt for reality

 

[divs4ever]

The brakes tend to work better than the accelerator in my opinion, you have to be careful not to apply them for to long, or the momentum is very hard to get back.

the accelerator works effectively and efficiently , all you need to do is slash regulation and complexity , removing the dullard with the foot on the accelerator ( the Government ) is usually more difficult ( as they love to build empires at tax-payer expense )

 

[moXJO]

The brakes tend to work better than the accelerator in my opinion, you have to be careful not to apply them for to long, or the momentum is very hard to get back.

Stamping out inflation imo is very difficult. Too little and inflation can run away from you and that's a huge issue.

Accelerator is easy. When threatened with deflation, just throw money out the helicopter- Ben Bernanke style.

 

[Knobby22]

Stamping out inflation imo is very difficult. Too little and inflation can run away from you and that's a huge issue.

True, the other tool the government has besides interest rates is to force the banks to put more money aside (through the Reserve Bank).

This is like putting the handbreak on as it greatly constricts lending forcing the velocity of money down. It forces down asset prices.

The Hawke Government used this when interest rates were up near 17% and they didn't want to go higher.

 

[moXJO]

True, the other tool the government has besides interest rates is to force the banks to put more money aside (through the Reserve Bank).

This is like putting the handbreak on as it greatly constricts lending forcing the velocity of money down. It forces down asset prices.

The Hawke Government used this when interest rates were up near 17% and they didn't want to go higher.

I think they will do it at some stage. Need a huge deflate in house prices.
Governments of the world have got themselves in such a sht situation that it's hard to see the way forward without a nasty recession.

 

[divs4ever]

I think they will do it at some stage. Need a huge deflate in house prices.
Governments of the world have got themselves in such a sht situation that it's hard to see the way forward without a nasty recession.

.. optimist

governments and currencies rely on trust

( just be careful which 'savior ' you follow out of this mess , plenty of 'snake oil salesmen ' out there )

 

[frugal.rock]

"At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.25 per cent."

Statement by Philip Lowe, Governor: Monetary Policy Decision - February 2023 | Media Releases

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent.

www.rba.gov.au

 

[divs4ever]

"At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.25 per cent."

Statement by Philip Lowe, Governor: Monetary Policy Decision - February 2023 | Media Releases

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent.

www.rba.gov.au

considering to 0.25% was the majority expectation am not sure what the market disliked in the accompanying speech

surely they didn't believe the RBA would stop/pause sub 3.5%

 

[Dona Ferentes]

With another 0.25% lift very likely today, all eyes will be be on commentary from Guy Dance.

markets are expected to turn on whether the key line, that “further increases in interest rates will be needed over the months ahead”, is maintained in the statement.

 

[frugal.rock]

"At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.60 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.50 per cent."

"The Board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary. In assessing when and how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market. The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that."

Statement by Philip Lowe, Governor: Monetary Policy Decision - March 2023 | Media Releases

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.60 per cent.

www.rba.gov.au

 

[waterbottle]

"At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.60 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.50 per cent."

"The Board expects that further tightening of monetary policy will be needed to ensure that inflation returns to target and that this period of high inflation is only temporary. In assessing when and how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market. The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that."

Statement by Philip Lowe, Governor: Monetary Policy Decision - March 2023 | Media Releases

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.60 per cent.

www.rba.gov.au

I don't know how anyone who read that statement can come to the conclusion that there is only one more rate hike left, as was consensus earlier in the year.

Even by their estimates, inflation won't even get to mid 3s until mid 2025 - that is not fast by any means.

They're also slowly massaging expectations for a slow down. Expectations for below trend growth for the next 2 years!

 

[CityIndex]

It is possible that the market is looking at the change in wording in the RBA's statement, going from an citing the likely need for "further increases in interest rates" last month, to "further tightening of monetary policy".

Any notion that this is a signal of only one more rate hike left is extremely speculative, but it is now a slim possibility, which it was not in the February statement.

 

[waterbottle]

It is possible that the market is looking at the change in wording in the RBA's statement, going from an citing the likely need for "further increases in interest rates" last month, to "further tightening of monetary policy".

Any notion that this is a signal of only one more rate hike left is extremely speculative, but it is now a slim possibility, which it was not in the February statement.

That would have to be the dumbest thing to come out of finance since BNPL

 

[Dona Ferentes]

That would have to be the dumbest thing to come out of finance since BNPL

Like traders calling themselves investors?

 

[waterbottle]

Like traders calling themselves investors?

I'm insulted