In its panic the government has over-stimulated the economy and that fiscal mistake is going to have adverse consequences, writes Sinclair Davidson.
Reserve bank of australia
Interest rate rise small change for mug punters
Yesterday’s interest rate rise was, in monetary terms, roughly what we spent yesterday per head losing on the Cup. And if we just offset the cost of all the hats and champagne with the lost working hours spent on office sweeps…
Forget mortgage holders, every rate rise hurts business
Why is the media so fixated on mortgage holders? More concerning is how much power the Big Four banks now hold over the economy, and how SMEs are struggling to get finance.
Kelly: How next year will unfold for Wayne and Kevin
Avoiding a recession has become both a gift and a burden to the Rudd government, writes Paul Kelly. Expect a battle between managing the economy recovery and spending on big ticket election issues — climate change, health and households. Can Swan reign in spending?
RBA lifts rates, declares GFC dead
The Reserve Bank has lifted interest rates by 25 basis points to 3.50%. Get set for a slew of increases as Glenn Stevens lets the good times roll.
Ask the economists: tomorrow’s RBA announcement
We asked the economists for their punt on the RBA’s interest rate announcement tomorrow, just ahead of the race that stops a nation. They say that the numbers will just keep going up…
Wood: Interest rates must rise. Deal with it.
With a strong economy, low inflation and a rising Aussie dollar, a Cup Day interest rate rise is now almost a certainty. And so it should be, says Alan Wood: rates can’t remain at 50-year lows forever.
NAB continues its billion dollar profit gouge
With such a strong result under its belt, you would have thought the NAB might have had the grace to mention the help from the federal government and Reserve Bank.
Australia: good at being poor, crap at being rich
Post GFC Australia is, well, pretty much the same as pre GFC Australia. The resources boom is still bubbling away, our relations with Asia continue to be crucial. Now, how will we cope with the prosperity?
How the RBA makes its interest rate decisions
A fascinating (if you’re that way inclined) inside look at how the Reserve Bank makes its decisions, from the people sitting around the board room table, to the “small army of analysts and economists” providing the intel.
RBA boss doesn’t like bank deposit guarantee
Reserve Bank governor Glenn Stevens has made it clear that he doesn’t like the idea of a government bank deposit guarantee and doesn’t want to see it return after it is withdrawn.
Stevens still sees the sunny side up
RBA Governor, Glenn Stevens, has rejected claims that the Australian economy is “too strong”. We may have escaped the global crunch but he’s determined not to fluff the recovery.
Crikey Says: Stimulus is doing its job
The benefits of the stimulus package are being examined right now by the Economics Committee. But it’s the jobs saved or supported by the stimuli that are the only important economic indicators at the moment.
Australia: the Switzerland of the South Pacific
It’s Australia’s moment in the global economic sunshine, with strong job figures, and a rising market. “In lifting interest rates, the RBA has succeeded… the Harbour Bridge as the new Australian icon”, writes Michael Evans.
scandal 
Kohler: How 18 out of 20 economists were wrong
Amongst all the chatter about interest rate rises, rumours were circulating that two journalists were getting leaked info directly from the RBA, reports Alan Kohler. What problems will this bring?
Glenn Stevens vindicated by jobless plunge
Reserve Bank Governor Glenn Stevens has developed a reputation for taking what seems to be tough decisions at the wrong time. But the latest job figures have proved him right. Again.
Stimulus isn’t money for nothing. Time to wind it back
Calls are mounting for the Federal Government to reduce its wide-ranging fiscal stimulus package as economists continue to upgrade the prospects for the Australian economy.
Rates up, more to come
The rate rises have begun, with RBA today lifting its cash rate 0.25% up to 3.25%. Is the Australian economy officially back on track?
graph pr0n It’s about the housing shortage, stupid
Our biggest public policy problem is that we don’t have enough dwellings for people who live here, with an estimated shortage in 2008 of 34,000 dwellings. Plus, we’re importing people at a rate of knots.
Crikey Says: The tongue twisting tales of the RBA
What the Reserve Bank of Australia Governor Glenn Stevens said yesterday about interest rates and the economy and what others heard him say are two very different things.
How the global economy flirted with The End
The Reserve Bank’s annual report reveals how desperate conditions in Australian markets were towards the end of last year. But from now on, the intense global recession is history: it’s all about how we handle the upturn.
Why Swan was right on stimulus
It made sense for policy makers everywhere to use all available counter-cyclical tools in an urgent attempt to lessen the serious risk of economic disaster, says Rory Robertson. But the economy story is not all good.
Crikey Says: We really are the lucky country, but…
Alright, we’ll admit it. Politicians have done a fairly decent job of running the nation for the last 20 years. However, climate change failings won’t be easily forgiven.
Australia was on the precipice: RBA
For the first time we have been given an inkling of just how close the Australian financial system and economy came to freezing or imploding in the last quarter of 2008.
RBA gets its hands on the rates lever
The minutes of the latest Reserve Bank meeting show an interest rate rise is expected, but no-one can agree on quite when it will happen.
