Peter Martin, Crawford School of Public Policy, Australian National University
If financial markets are to be believed, you’ll be paying $1,000 a month more on a $500,000 mortgage by the end of next year. But I don’t think interest rates will go that high – here’s why.
For the past 30 years or so, the RBA has targeted an inflation rate of 2-3%. But the rationale for a rate that low was always weak, and has since broken down.
The independent review of the Reserve Bank should be headed by someone from outside the country say 12 leading economists in an open letter to the treasurer.
The share of the population in work has hit an all-time high as the share of the workforce underemployed has hit a 14-year low. The fresh low in unemployment will bring higher interest rates, and perhaps higher wages.
Peter Martin, Crawford School of Public Policy, Australian National University
Why raise rates now, for the first time in more than a decade? If the Reserve Bank isn’t careful, too many more rate hikes like this might help bring on a recession.
The government used to set interest rates but it doesn’t anymore. If UAP really did try to deliver on an election promise to cap interest rates at 3% for five years, what would the consequences be?
Do you have what it takes to be Australia’s number two central banker and heir apparent to the governor? Here are the questions you’ll need to prepare to answer.
Peter Martin, Crawford School of Public Policy, Australian National University
Unemployment is far lower than predicted and isn’t setting off the kind of inflation seen in the United States. There’s no telling how much lower it can go.
Peter Martin, Crawford School of Public Policy, Australian National University
The Conversation’s expert panel predicts prices will rise faster than Australians’ pay can keep up in 2022 – and that’s not their only concern about the local economy.
Brainard has been pushing the Fed to consider exposure to climate change in its regulation and analysis of banks. That’s sparked fury from Republican senators – and even a Nobel Prize winner.