Tag Archives: inflation

What is the fiscal impulse from the Australian Budget?

The Australian Government is moving in the right direction, but not fast enough, with fiscal policy if it wants to fight inflation. It appears too reliant on the expected cessation of pandemic-related stimulated measures to support its claim that the … Continue reading

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RBA review: why it’s necessary and what it should recommend

The RBA is in the spotlight at the moment as there’s a risk its monetary tightening will crash the housing market and broader economy. Arguably, it should have acted earlier to raise rates and to stop its quantitative easing. Even … Continue reading

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Global stagflation risk increasing – my latest podcast episode

Earlier this week, the World Bank cut its global economic growth forecast and warned of the risk of 1970s-type global stagflation, with a coincidence of high inflation and low growth and high unemployment. I had already decided to cover stagflation … Continue reading

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RBA is copying the Fed as Michael Knox forecast

In my previous post, I discussed my latest podcast chat with Morgans Chief Economist Michael Knox who forecast the RBA would today increase the cash rate to 0.85%, as it did. As Michael noted, the RBA has been copying the … Continue reading

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RBA’s next move: 25, 40, or 50 basis points? Michael Knox says 50 on Economics Explored

Next Tuesday, the RBA will increase the cash rate again, but it’s uncertain by just how much. Reuters is reporting RBA to raise rates a modest 25 bps in June, some call for 40 bps, where bps stands for basis … Continue reading

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Economic update: interest rates, monetary policy, fiscal policy, and coal prices

The election debate would benefit from a clear understanding of the factors affecting interest rates, now that the RBA has increased the cash rate from the “emergency level” of 0.1%, practically the lowest it could go, to the still extraordinarily … Continue reading

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Housing lending remains at super high levels

First, my thoughts go out to all those affected by the recent flooding in Queensland and northern NSW. The intensity of the rainfall was extraordinary – in Brisbane, 80% of a full year’s rain in a few days reportedly. While, … Continue reading

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Economic update and interest rate discussion at Brisbane Club next Wednesday

Australian Treasury Secretary Steven Kennedy nicely summarised the economic outlook in his Opening statement to the Parliament’s Economics Legislation Committee yesterday: Nonetheless, while the disruption caused by Omicron has been significant, its overall economic impact is likely to be less … Continue reading

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Optimism at home, big inflation concerns abroad – catch up with my livestream at 11.30am AEST

While Australian economic policy makers are forecasting a growing economy with moderate inflation, policy makers elsewhere are concerned about accelerating inflation. In the federal budget update released yesterday, the Treasury has forecast a growing economy with inflation within the RBA’s … Continue reading

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Livestream featuring US jobless claims, Aussie GDP + farewell to Tony Makin

I did a livestream earlier today with my regular co-host Tim Hughes on the latest economic news of the week, including the latest US initial jobless claims confirming a strong US economy, the impact of the omicron COVID-variant on equity … Continue reading

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