Reserve Bank of Australia

Discover how the Reserve Bank of Australia fixes the price of money at the expense of ordinary Australian savers like you.

Find out how any shift in monetary policy can send the value of your assets, whether it’s your share portfolio, your house or even the dollars in your pocket up and down like a yoyo.

Understanding monetary policy will make you a better investor. Why not read the arguments for abolishing central banks like the RBA and letting the market set interest rates? To see what you think, start here…

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Australian dollar
Time to Get Bearish on the Aussie Dollar
A lower Aussie dollar may benefit the commodity sector and other export-reliant businesses. But it also drives up prices for consumers. Because we import so many goods, a lower currency means that you’ll pay more for goods.
wages not growing
When Wages Just Won’t Grow
Here’s where it gets sticky for the RBA: Their metrics are saying that almost all Aussies that want work have jobs. That suggests wages should be growing. But they aren’t. The biggest factor to wages and inflation turns out to be technological disruption.
interest rates cut reserve bank of aus
The RBA Just Spilled the Beans on Interest Rates in 2018
The RBA can talk about business activity all it wants. Yet, at the end of the day, it all comes down to how Australian households would cope with a rate increase. One that banks would almost certainly pass on to mortgagees. In effect, the RBA has told us what to expect.
ASX hike after interest rates on hold
No Rate Rise Pushes ASX Higher
How the ASX reacts from here will be interesting to watch. Low interest rates for the foreseeable future could mean more investors flooding into the market, hoping to seek out returns.
interest rates cut reserve bank of aus
Why the RBA Has to Cut Interest Rates
Without consumption signalling that everything is OK, I don’t believe there’s any way the RBA will be raising interest rates. In fact, I think they’ll have to cut rates, regardless of concerns about high house prices.
Australian interest rates
ANZ Economist Predicts Aussie Interest Rate Rise
For a while now, I’ve been convinced the Reserve Bank of Australia (RBA) wouldn’t increase interest rates any time soon. My reasoning is based on low income growth, households drowning in debt, and inflation showing little sign of hitting targets of 2–3%.
Australian interest rates
Profiting in a Low Interest Rate Environment
RBA released the minutes of their 5 September Monetary Policy Meeting. Various members of the RBA discussed topics ranging from employment to wage growth and housing activity, and what these could mean for interest rates going forward.
manipulating data
Australia’s Economy – The Twisted Tale
The problem is that central bankers favour official statistics. When you tweak and manipulate data to suit your agenda, the government has a much rosier outlook. One Aussie central banker likened the Aussie economy to an underperforming high school student, saying Australia is operating ‘below its potential’.