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
Headlines from RBA Lowe's Speech Tuesday
RBA Lowe: No Change in View Little To Be Gained from Negative Policy Rate
RBA Lowe: Negative Policy Rate Extra...
More Headlines from RBA Policy
Any bond-buying to support 3-yr target would be in addition to A$100B QE
Not expecting to raise cash rate f...
Published on : 03 Nov 2020 , 02:35 PMHeadline from RBA's November MonPol Decision
From the RBA's November Monetary Policy Decision statement:
-Cuts cash rate target to 0.1% from 0.25%
RBA TFF drawdown steady since Sep 30 as bks await rate cut
Total amount drawdown from the RBA's Term Funding Facility has been unchanged for three straight weeks...
Published on : 30 Oct 2020 , 04:13 PMAustralia Note yields continue declining on expectation of 1bp ES rate
Yields fell further to new record lows at the AOFM weekly T-Note tenders as market factors in the possibili...
Published on : 29 Oct 2020 , 10:42 AMAustralia Note yield drop to new low ahead of RBA cuts
As expected, the yield on near-term T-Note fell to a new record low at today's AOFM's auction. The weighted a...
Published on : 22 Oct 2020 , 10:40 AMCould Australia Note Yield Drop to New Low at Auction?
Looking forward to the AOFM's weekly T-Note auctions later this morning. The record low weighted average yield fo...
Published on : 22 Oct 2020 , 10:09 AMRBA Kent's speech title
The title of RBA assistant governor Chris Kent's speech on Tuesday is a very interesting one, "The Sta...
Published on : 19 Oct 2020 , 08:19 PMAustralia Note yields drop to new low
Yields at AOFM's Treasury Note auctions dropped to new record low on ample liquidity and expectations of cut...
Published on : 01 Oct 2020 , 10:43 AMJust one investor buys entire A$2B of 2030 govt bond at tender
One bidder got the entire A$2.0 billion of the 1% December 2030 government bond at the tender today. The yield was 0....
Published on : 30 Sep 2020 , 11:20 AM