Australian Politics

1402 readers

9 users here now

A place to discuss Australia Politics.

Rules

This community is run under the rules of aussie.zone.

Recommended and Related Communities

Be sure to check out and subscribe to our related communities on aussie.zone:

Plus other communities for sport and major cities.

https://aussie.zone/communities

founded 2 years ago

MODERATORS

[email protected]

RBA is lost in the frightening territory of full employment (www.rossgittins.com)

submitted 2 weeks ago by [email protected] to c/[email protected]

7 comments fedilink hide all child comments

The Reserve Bank’s behaviour last week can only be described as bizarre. It’s a sign that it’s lost its bearings and isn’t sure what’s happening in the economy or where it’s headed. What has caused its befuddlement? Our unexpected return to near full employment.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 1 week ago* (last edited 1 week ago)

Everything else being equal a lower interest rate is better.

Not for everyone. Eg, self funded retirees might prefer higher interest rates as they hold a higher portion of their wealth in cash and interest bearing securities etc. Lower interest rates reduce their income and so, quality of life.

Oh, and banks and their shareholders would definitely prefer higher interest rates too.