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Central Bank Policy

1-12 out of 38 results.

Shares rebound on hopes of war ending, but stalemate the likely outcome

Ashley Owen's abridged monthly snapshot uncovers what is front of mind for investors around the world and his view on the likely outcome of the stand-off in the Middle East.

Five simple reasons why Australian cash rates are highest

Australians are suffering the highest cash rates amongst their rich country peers for five simple reasons, including outdated inflation targeting and undisciplined monetary and fiscal policies.

I called inflation's rise and fall and here's what's next

In 2020, I warned that surging US money supply growth would spark inflation. By early 2023, I said US money supply was dropping dramatically and that meant inflation would decline. Here's what happens next.

The RBA's balancing act

During the pandemic, the RBA’s balance sheet swelled to over $600 billion, which is now steadily shrinking. This explores the implications for financial markets, interest rates, and the economy’s path forward.

The RBA’s QE losses

Accounting losses from a pandemic inspired bond buying spree have wiped out the RBA's equity and more, pushing its balance sheet into negative equity territory. How did it happen and what lessons can be learned?

Clime time: the RBA isn't independent nor should it be

Australia should break away from the dogmatic belief that the RBA must be independent of Government. How can it be, when the RBA is the country's largest single creditor, owning around 40% of government debt?

Trusting the process in a high-rate environment

  By keeping interest rates on hold this month, the RBA expects that rate increases to date will eventually weigh on consumers and house prices. Is the RBA early or is it wrong, and what are the implicatons for markets?

Can quantitative tightening help tame inflation?

  The response to inflation in advanced economies has seen rapid interest rate rises, but the money supply has remained elevated, particularly in Australia. Should the RBA be doing more to reduce its balance sheet?

Is more trouble coming for the 60/40 portfolio?

The 60/40 portfolio has performed poorly during the recent period of high inflation. With peak inflation likely behind us, here's a stock-take on the year so far and what it might imply for portfolios going forward.

Druckenmiller on the biggest mistake in the history of the Fed

Fund manager Stanley Druckenmiller gave a much-publicised interview at the 2023 Sohn Conference in the US last week. In this extract, he warns about the asset bubble the US Fed has created and his dire expectations.

9 ways that global markets are changing

Australia's economy is in good shape after the extraordinary shift in global markets over the past 12 months, but here are nine macro and geopolitical factors for investors to check in a rapidly-changing world.  

2023: inflation, diversification, agility and an eye to recession

The RBA and interest rate markets are underestimating inflationary pressures. Combined with a government intent on increasing wages, there's a risk of entrenching higher inflation in Australia compared to elsewhere.

Most viewed in recent weeks

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

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