Foreseechange

Tag: interest rates

  • Risk of overshoot on interest rates

    The monetary policy of the RBA seems to have had little impact on inflation and the rate of unemployment over the period since 2002 – in fact, the impact seems to have been perverse.  That is, the opposite of what was intended!  Unless the RBA recognizes this, they run the risk of pushing interest rates […]

  • The old relationship between consumer spending growth and economic drivers has broken down

    Between the recession of the early 1990’s and the global financial crisis (GFC) in 2008-09 there was a reasonably consistent relationship between Australia’s consumer spending growth and drivers such as interest rates, employment growth, and residential property prices. Since then, the old relationships have broken down.  In addition, there has been the Covid-19 pandemic disruption […]