Record low interest rates will almost certainly drive up property prices. But they will also drive down unemployment and boost investment generally.
Much more needs to be done to accelerate spending and investment, says UNSW Business Professor Richard Holden.
By himself, Reserve Bank Governor Philip Lowe may not be able to keep Australia out of recession.
Any interest rate cut on Tuesday could be supercharged by another move to give borrowers more money to play with.
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.