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.
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.
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.
