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.
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.