Interest Rates

The price we'll pay for the RBA’s low-rate policy

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The Reserve Bank slashed interest rates while the economy was strong. Now we are left with an out-of-whack property market and rising inflation that may not be so easy to reverse.

Australia mustn't jump the gun on macro-prudential policy

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The effectiveness of macro-prudential policy in regulating financial systems has yet to be quantified, and the Murray Inquiry is right to advise that the RBA and APRA tread with caution.

Parkinson warns on low rates

Treasury secretary says pressure needs to be taken off monetary policy.

Aust dollar above US94c in late trade

Local currency lifts after core inflation figures beat analysts' expectations.

Weekend Economist: Strong language

The Reserve Bank needs a combination of jawboning and an easing bias to bring the dollar down, but the latter is unlikely anytime soon.

Fed's Fisher calls for earlier rate hikes

Federal Reserve Bank of Dallas president says rates should rise early next year, at the latest.

Yellen not fearful of asset bubbles

Fed chair says threats to financial stability are only at a 'moderate level'.

US recovery 'not yet complete': Yellen

Federal Reserve chair offers more guidance on timing of rate hikes, strikes cautious tone.

Lloyds nears US, UK Libor deal

British bank close to rates manipulation settlement with authorities in UK and US.

RBA uncertain on easing's effect

Central bank finds it difficult to judge extent to which low interest rates are working.

Wave of cash returns to Aust

Foreign investors in heavy buying of Aust dollar and govt bonds amid chase for yield.

Gold in largest drop since December

Precious metal slumps on concerns US central bank may raise rates sooner than expected.

The 'new normal' has neutralised the RBA

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Neutral interest rates are falling across the developed world, including in Australia, leaving the RBA with less room to move. If state and federal governments don’t pick up the slack a recession could be on the cards.

US hike could hurt Aust dollar: Stevens

Goldman Sachs economist says Reserve Bank could be forced to cut within months.

Weekend Economist: Disoriented doves

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The doves are pointing to weaker economic data and dour confidence figures for rate cut calls. But both are not what they seem.

Fed bond-buying program to end in October

Minutes of latest policy meeting offer definitive end date to controversial measure.

Fed sees room for unconventional exit

Minutes of latest policy meeting show Federal Reserve mulling unusual rates strategy.

Weekend Economist: Stevens' swipe

Glenn Stevens had nothing to lose talking down the dollar. But we'd need to see a major consumer downturn for another rate cut.

Rate cut won't help dollar: McKibbin

Former RBA board member says fixed supply assets keeps capital local.

ECB prepared to go unconventional if necessary: Draghi

Europe keeps interest rates on hold and maintains inflation remains a focus.

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