The Reserve Bank has named low wages growth and low inflation as reasons for its decision to not increase interest rates from 1.5%, writes Richard Holden.
Data from Australia and overseas, inlcuding the fluctuations in the US stock market, point to a tricky balancing act for policy makers, writes Richard Holden.
With 2018 likely to see US and Australian interest rates diverge, Australian investors are on the lookout for nascent signs of inflation, writes Richard Holden.
Employment rising, consumer spending growing but wages are still stuck. Therein lies the problem for the Reserve Bank of Australia, writes Richard Holden.
With slow wages growth it will be hard for households to “de-lever” themselves, writes Richard Holden.
If former US Treasury Secretary Larry Summers is right, then the unmistakable implication is that the RBA should probably cut rates – perhaps twice – later this year, writes Richard Holden.
Fluctuating interest rates pose a threat to the yield of seasoned institutional investors and fund managers, who need to quickly adapt their approach to plummeting in cash rates.
Inflation has been stubbornly low in Australia, and the RBA remains concerned about a high Australian dollar, writes Richard Holden.
Jobs data lowers the likelihood of a US interest rate hike, Australian business investment beats expectations, but retail trade remains flat, writes Richard Holden.
A large chunk of economic data was released this week and while nothing was shocking or terrible, there is mounting evidence the world’s economic growth problem is entrenched.