rba

Weekly Update | 23rd September 2023

A shock to Chinese demand would mainly be borne by lower incomes, with a lower AUD a critical shock absorber.

Key Points: • Australia is at, or close to the end, of the fastest monetary policy tightening cycle since the late 1980s. • Every economic cycle is unique, but most...

Strong unit labour costs risk delaying the return of inflation to the 2-3% target band

Arguably the most significant lesson is that future Governors should intervene with monetary policy far less than he did.

In this wire, I outline five pivotal moments from the soon-to-be ex-governor's time at the helm of the RBA.

Another measure of wages shows labour costs are growing strongly.

Workers securing pay rises are achieving large increases.

The diminutive equity risk premium suggests Aussie stocks are more expensive than you think.

There has been an argument in recent months suggesting corporate profits are driving inflation. In this wire, I'll argue why that's wrong.

George Tharenou, UBS' Chief Economist for Australia, has called every RBA decision correctly since July 2022. He tells us how he does it.