Former Reserve Bank of Australia economist Paul Bloxham is tipping the central bank will not raise interest rates on Tuesday because the RBA will wait for wages growth and governor Philip Lowe would prefer to avoid holding a news conference during the election campaign.betting the RBA will not increase the record-low 0.1 per cent cash rate in May and instead wait until June after wages and average earnings data are published.
Dr Lowe said after the April board meeting that the RBA was awaiting evidence on “both” inflation and labour costs over coming “months”. Mr Bloxham, who worked at the RBA for 12 years until 2010, said Dr Lowe may be reluctant to call a snap news conference if the RBA were to raise interest rates. It is not mandatory for Dr Lowe to call a news conference, but he has deliberately increased the central bank’s transparency in his 5½ years as governor through more regular public communications.During the pandemic, the governor has often held snap news conferences when announcing major changes to monetary policy such as the $350 billion government bond-buying program.
Paul Bloxham has been wrong on multiple occasions regarding the RBA and tightening of monetary conditions.
Ridiculous!!!! Lowe needs to do his job and put up rates
Yes, they need the wage growth data that will only come at the end of May so earliest rate rise is likely to be June.
Ok, so let’s all take a holiday until after the election.
He doesn’t hold a hose either ?
What a 🤡
RBA may wait until outcome of Fair Work Commissions decision on the National Minimum Wage (including aged care workers) which I think is due after the election. If FWC lift wages, RBA should follow with a rate rise.
The RBA has been truly negligent in this. If they had raised interest rates years ago it would helped control the housing market and encouraged offshore investment. Instead people now have stagnant wage growth and massive mortgages. Catastrophe...
What does an election campaign have to do with the RBA doing it's job. Is the RBA not meant to be an independent body from government?
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