- Joined
- 28 August 2010
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ohh the tyranny, current affair will love it
Banks will and cop the blame: clever move from Morrison ?
Not sure if Scomo has anything to do with it.Banks will and cop the blame: clever move from Morrison ?
The Canadian CB has acknowledged that inflation is rising , and the forces are stronger and more persistent, GDP growth is strong (and forecast to get stronger). hence their plan to end QE earlier. It still thinks that inflation will ease back around 2% in late 2022, though I will be betting that it will have act on inflation earlier than that. They have already brought forward the planned QE easing, so I expect the interest rates will also have to be adjusted earlier than they forecast.The recent increase in CPI inflation was anticipated in July, but the main forces pushing up prices – higher energy prices and pandemic-related supply bottlenecks – now appear to be stronger and more persistent than expected. Core measures of inflation have also risen, but by less than the CPI. The Bank now expects CPI inflation to be elevated into next year, and ease back to around the 2 percent target by late 2022. The Bank is closely watching inflation expectations and labour costs to ensure that the temporary forces pushing up prices do not become embedded in ongoing inflation.
The Governing Council judges that in view of ongoing excess capacity, the economy continues to require considerable monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s projection, this happens sometime in the middle quarters of 2022. In light of the progress made in the economic recovery, the Governing Council has decided to end quantitative easing and keep its overall holdings of Government of Canada bonds roughly constant.
They're on the take from the liberal party, who are on the take from real estate developers and also own a mountain of investment properties themselves.I just don't understand the thinking at the RBA.
As pointed out, they are adamant that they will not need to be raising interest rates until 2024.
The market has twice tested their resolve, and both times they have caved.
Last Friday they stepped in not once, but twice into the market to buy bonds to keep the yield around their target rate.
And yet on Wednesday and Yesterday again, when the market tested their resolve, they did not step into the market to support their yield curve, and it shot up 0.5 from their preferred 0.15.
So what has changed??
Have they run out of money (ha ha)?
Are they telegraphing a rate hike come Tuesday?
Did the Federal Government (Scomo) lean on them?
Did they just get cold feet?
Did the Murdoch Press ring the RBA and tell em to back off?
Or are they just as clueless as everyone else?
Mick
Thanks for that such a useful an insightful response.They're on the take from the liberal party, who are on the take from real estate developers and also own a mountain of investment properties themselves.
When interest rates are low, P/E is high. It's as simple as that.
I was being serious.Thanks for that such a useful an insightful response.
Mick
I just don't understand the thinking at the RBA.
As pointed out, they are adamant that they will not need to be raising interest rates until 2024.
The market has twice tested their resolve, and both times they have caved.
Last Friday they stepped in not once, but twice into the market to buy bonds to keep the yield around their target rate.
And yet on Wednesday and Yesterday again, when the market tested their resolve, they did not step into the market to support their yield curve, and it shot up 0.5 from their preferred 0.15.
So what has changed??
Have they run out of money (ha ha)?
Are they telegraphing a rate hike come Tuesday?
Did the Federal Government (Scomo) lean on them?
Did they just get cold feet?
Did the Murdoch Press ring the RBA and tell em to back off?
Or are they just as clueless as everyone else?
Mick
' many a true word said in jest ' , my mum would say ... however i prefer punsHow can we take someone seriously when their moniker says Forum jester??
Mick
This is where inflation multiplies.Two of his mates were there, one a builder, the other an electrician.
All of them have the same problem, actually getting the raw materials to work with.
Supply train issues means that they no longer have one wholesaler, they basically have to ring around to find out who has got stock, then start talking about prices.
I think it was pretty bloody obvious to anyone with even half a brain.How can we take someone seriously when their moniker says Forum jester??
Mick
But how would they know anything a year ahead...seriouslyBanks etc. are still saying no rate rises until late 2022.
it's standard banking procedure to say one thing but do the opposite I thoughtBut how would they know anything a year ahead...seriously
I doubt there would be any in the real world of actually running/owning a business would take any notice of the hopelessly outdated ABS labour statistics. They conduct interviews of a fixed number of participants, then massage the data to counteract seasonal variations, and produce stats that a lot of business people just laugh at. the Australian labour market is a highly variable beast that only varies greatly with time, but also with region and area. This is even greater now with the various border restrictions, both state and International.But AMP Capital chief economist Shane Oliver said investors were likely getting ahead of themselves, amid a chaotic few days of bond trading.
Dr Oliver said such a rapid move higher in rates would be a “shock” to the economy and drive houses price down at a time when the post-Delta recovery in previously locked-down states was still in its early stages.
With that in mind, Dr Lowe would make clear in Tuesday’s statement that a hike remained some distance away, Dr Oliver said.
Beyond Covid-related price increases in segments such as housing construction materials and imported goods such as cars and furniture, Dr Lowe has repeatedly said that a meaningful lift in wages growth – to at least 3 per cent – remained central to sustainably higher inflation over the medium term.
Aside from anecdotal evidence, there remains little hard data that labour shortages are feeding through to economy-wide pay gains.
The Australian Bureau of Statistics’ latest wage price index showed only 1.7 per cent increase over the year to September – barely half of the headline inflation rate, meaning workers’ “real” pay went backwards.
Ok, will turn off half my brain when reading your contributions from now on.I think it was pretty bloody obvious to anyone with even half a brain.
Suspect Government will flood the country with migrants to put downward pressure on wage inflation. You can already see NSW Premier etc. pushing the Feds to turn the spigot on.
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