When the Reserve Bank considers the numbers around inflation, it knows it has little choice but to act, says Professor Richard Holden.
Pushing up interest rates due to current Australia unemployment figures and historical economic theories may de dangerous.
It is thought that it doesn't help much to cut official interest rates toward or beyond zero, and maybe it doesn't, but new research suggests the answer has a lot to do with the housing market.
Persistently low inflation puts the Reserve Bank in a difficult position where the right thing to do might be doing nothing at all, writes Richard Holden.
Reserve Bank of Australia governor Philip Lowe has effectively ruled out an interest rate rise until wage growth tops 3%.
The impact of ASIC and APRA's response to the findings of the banking royal commission could be a gamechanger in 2018.
Australia may be celebrating 103 quarters without a recession, but the figures may not be quite as rosy as they first appear.
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.