My tweets from first session of RBA's Parliamentary testimony today
By Sophia Rodrigues
Published On 07 Feb 2020 , 10:59 AMRBA Lowe: If the unemployment rate were to be moving MATERIALLY in the wrong direction n there was no further progress being made towards inflation target, the balance of arguments would tilt towards a further easing of monpol. Emphasis on "materially"
RBA Governor Lowe has used one word "materially" in the opening statement and I can almost visualize all those with April rate cut forecast getting worried. Can we strike off May..June..July and go straight to August?
So now we have more clarity. RBA Lowe has realized interest rate cuts have been driving recent rise in housing prices. "dominant factor is lower interest rates, reduction in interest rates." Not structural factors this time.
RBA Lowe: I won't characterize Australian economic is lackluster, I would say it is OK. It could be a lot better
RBA Lowe: I am pushing back against the view that lower interest rates damaged household confidence.
RBA Lowe acknowledges maybe there was policy mistake in 2018 when RBA didn't cut. BUT as he says we know this only in hindsight. RBA couldn't have known in real time.
RBA Lowe: we are doing the best we can do to support medium-term macro stability.
RBA Debelle: When facts change, I change my mind. Well dear Debelle, we are all banking on that.
RBA Lowe: There is nothing monpol can do to get inflation to middle of target band (2.5%) by 2021. Because "we would have to have interest rates three or four percentage points lower than we are now."
LATEST SNIPPETS
RBA Lifts Cash Rate 25bps to 4.60%
The RBA raised the cash rate by 25bps to 4.60%, taking the total rate hike this year to 100bps.
The increas...
Published on : 29 Sep 2026 , 02:45 PMConcerts in Australia and Demand in 2027
There will no doubt be stories about this in the months to come, but based on my understanding, 2027 is turning out t...
Published on : 23 Sep 2026 , 06:54 PMCredit to Macquarie Uni Student
It was a question I was asked by a student at Macquarie University that led to a last-minute decision (I had prepped...
Published on : 23 Sep 2026 , 06:53 PMTwo Big Four Banks Forecasting RBA Sep Hike
Two of the four big banks are now forecasting RBA hike in September. Westpac moved today to September (was the last b...
Published on : 18 Sep 2026 , 06:51 PMRBNZ Assistant Governor Silk to Leave in Dec
RBNZ's assistant governor Karen Silk to leave the bank in December.
The executive leadership team...
Australia and Recession. Really?
Apparently one more RBA cash rate rise will tip Australia into recession, given weak sentiment and housing market dow...
Published on : 10 Sep 2026 , 06:48 PMCentral Bank and Communication - RBA
RBA deputy governor Andrew Hauser's interview with ABC's 7:30 program yesterday was pre-recorded.
Central Banks and Communication - RBNZ
The Reserve Bank of New Zealand lifted the OCR by 25bps to 2.75% and flagged the OCR may need to rise further.
...
RBNZ Lifts OCR 25bps to 2.75%
The Reserve Bank of New Zealand lifted the Official Cash Rate by 25bps to 2.75%. The decision was reached by consensu...
Published on : 02 Sep 2026 , 12:15 PMAustralia And $1T Issuance
Australian Commonwealth securities on issue have crossed A$1 trillion. It is not the same as debt crossing A$1 trilli...
Published on : 02 Sep 2026 , 10:51 AM