Analysis: Risk of Low Inflation for Longer from RBA’s Flexible In...

By Sophia Rodrigues

Flexibility in meeting the inflation target is a good thing except that too much of anything, including flexibility, may be a bad thing. And that’s exactly what is happening with the Reserve Bank of Australia wh...

Opinion: Risk of RBA Policy Error from Distorted Money Market Sig...

By Sophia Rodrigues

Australia’s money market is currently placing too much weight on the Reserve Bank’s comments and not enough on assessing economic data. This is distorting the signals it is sending to the policymaker and u...

Insight: RBA More Downbeat on Labor Market, Could Cut Again

By Sophia Rodrigues

A key factor in the Reserve Bank of Australia’s rate decision Tuesday was more downbeat outlook for the labor market, that meant the economy needed more stimulus via a cut in the cash rate.

The urgency...

Analysis: One Reason Why the RBA will Cut Cash Rate Tuesday

By Sophia Rodrigues

Ahead of the Reserve Bank of Australia’s cash rate decision on Tuesday, market is pricing around 77% chance of a 25 basis points cut and majority of economists are also expecting a cut.

The key questio...

Analysis: The Keyword in RBA Lowe’s Speech That Points To Rate Cu...

By Sophia Rodrigues

There was one word in the speech RBA Governor Philip Lowe delivered last night that clearly points to a cash rate cut next Tuesday and it is “marked.”

Lowe used the word twice in the speech when...

Insight: Rising Housing Prices Not Worrying RBA

By Sophia Rodrigues

The Reserve Bank of Australia isn’t worried that recent cuts in the cash rate has pushed up housing prices and on the contrary, is relying on its impact on household consumption and dwelling construction to prov...