RBA Cuts Cash Rate 25bps; Easing Bias Tied to Coronavirus

By Sophia Rodrigues

The Reserve Bank of Australia lowered the cash rate by 25 basis points to a new record low of 0.50% and retained an easing bias tied to the impact of coronavirus, rather than the labor market.

This means the...

OPINION: Would RBA Go Hard, Lower Cash Rate By 50bps Tue?

By Sophia Rodrigues

There is a case for the Reserve Bank of Australia to lower the cash rate by 50 basis points on Tuesday.

The last occasion the RBA delivered a cut of 50bps or more was in May 2012 and prior to that, it was du...

Analysis: RBA Lowe’s Confusing Guidance Means We Missed Key Line

By Sophia Rodrigues

From pricing just 20% probability of a 25 basis point cash rate cut, Australia’s money market is now pricing over 100% chance, making it very likely the Reserve Bank will lower the cash rate when it meets on Tue...

RBA Paper: Lower Interest Rates Increase Housing Wealth Inequalit...

By Sophia Rodrigues

Lower interest rates increase housing wealth inequality at least in the short term, according a discussion paper published by the Reserve Bank of Australia Monday.

The paper examines the distributional effec...

OPINION: RBA’s Lowe and Debelle: One Slightly Dovish, Other Tad H...

By Sophia Rodrigues

We all know the Reserve Bank of Australia has a very weak dovish bias and is reluctant to lower the cash rate further.

But do we know if all members of the monetary policy board share the same view?

Analysis: RBA’s Weak Dovish Bias Because Rate Cuts Working More T...

By Sophia Rodrigues

Last week, the Reserve Bank of Australia signalled a very weak dovish bias that was as good as hold for longer, to the surprise of many.

But what is more surprising is the change in bias was driven by RBA&rs...