Friday, 09 June, 2023

AFR: Why the cash rate could hit 5pc before the RBA is done

With labour costs, not profits, the biggest driver of inflation, the central bank will have to go higher to crush Australia’s wage-price spiral Christopher Joye, portfolio manager, Coolabah Capital Investments Over at the AFR I write that on December 9, 2021, Coolabah’s internal research team presented highly contrarian analysis regarding where the Reserve Bank of Australia would take interest rates over the coming years. This was part of a weekly “hunger games” competition that we […] Read More

Friday, 26 May, 2023

AFR – RBA governor warns Labor over wages

RBA governor warns Labor over wages Phillip Coorey, May 26, 2023 – 6.00pm https://www.afr.com/politics/federal/rba-governor-warns-labor-over-wages-20230525-p5dbei Reserve Bank of Australia governor Philip Lowe has warned federal Labor MPs that generous wage rises they were backing would make inflation worse unless they were accompanied by increases in productivity, in what sources said was a series of tense exchanges this week. As Labor and the unions back wage rises, in some cases linked to the current headline inflation rate […] Read More