Inflation continues to be too high – The Board in charge of setting interest rates in Australia have left the rates where they were at 4.10 percent. This comes after they had already raised interest rates by 4 percentage points since last May. They did this to try to balance the economy by controlling how […]
Climate Change & the RBA Aug 2023 – The incoming RBA Governor, Michele Bullock (our first female governor) delivers the Sir Leslie Melville Lecture 2023. She speaks on Climate Change & monetary policy. She starts by discussing how more frequent and severe weather events and the global transition to net zero could affect the setting […]
Unemployment near 50 year lows – Australian economy growth has slowed. Companies report that labour shortages have lessened, yet job vacancies and advertisements are still at very high levels. Unemployment rate remains close to a 50-year low. Wages growth has picked up in response to the tight labour market and high inflation. Click below to […]
Triple Witching – ‘Triple Witching’ refers to the simultaneous expiration of three types of financial derivatives:1. stock options,2. stock index options, and3. stock index futures. During triple witching, investors and traders close out or roll over their expiring options and futures contracts. This can result in significant trading activity as market participants adjust their positions […]
Inflation still too high – High inflation makes life difficult. It damages the functioning of the economy as it erodes the value of savings, hurts family budgets, makes it harder for businesses to plan and invest, and worsens income inequality. Recent data indicated to the RBA that the upside risks to the inflation outlook have […]
Economic Update May 2023 – Click below to read the latest update from The Reserve Bank of Australia (RBA) on: – interest rates & inflation – local & global economies – employment & wages How do the Reserve Bank come to their decisions on Interest Rates? The Board of the RBA consider the outlook […]