The word patience disappeared from the statement RBA governor Philip Lowe issued explaining the bank’s decision to leave the cash rate at 0.1 per cent on Tuesday.
The Reserve Bank has finally lost patience - but home buyers and businesses will still have to wait until interest rates start climbing.The cash rate remains at 0.1 per cent. That’s where it was in November 2020 when the bank was forecasting unemployment to reach 8 per cent, a collapse in business and housing investment, a decline in the terms of trade and inflation to remain below 1.75 per cent for the next two years.
Household and business balance sheets are “in generally good shape”, business investment is strengthening with a large pipeline of work while national income is growing thanks to higher commodity prices.A monetary policy alien from Mars would look at that statement and be wondering when the Reserve Bank is going to next lift official interest rates. The same alien would crash their spaceship when told the cash rate is still at 0.1 per cent and is unlikely to be lifted until June.
This time it is holding back on what everyone in monetary circles knows is coming – a rate rise – until after the polls are closed.
Are they still printing for themselves and their Anglo mates?
Phil Lowe holding off for a reason? Rates low since 2019, and he was imploring Frydenburg for help. Is the reason that Lowe sees a fundamental problem with Australian economy?
How about New York?
It is a shame that actions by any arm of government appear to be designed to aid the re-election of the lnpCoalition Interest rate rises are inevitable and will be blamed on the ALP rather the economic annals that have had the reins for the last nine years
Don't want to be blamed for any election effects from rising interest rates
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FinancialReview - 🏆 2. / 90 Read more »
Source: SkyNewsAust - 🏆 7. / 78 Read more »