Analysis: RBA QE: Bond Buy Only to Support Fwd Guidance; Liquidit...

By Sophia Rodrigues

Purchasing government bonds with forward guidance as the main reason and providing liquidity via enhanced market operations are likely to be the Reserve Bank of Australia’s favoured measures as the cash rat...

RBA Has So Far Estimated Coronavirus Impact On GDP Only from Tour...

By Sophia Rodrigues

The Reserve Bank of Australia has estimated the impact of coronavirus on GDP based on its effect on tourism and education, and hasn’t taken into account the flow-on impact on other parts of the economy yet.

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...