It could very well be the case. Although we might continue to see a broader USD pullback on rising speculation that the Fed may slow the pace of tightening, the RBA is the only major central bank who has actually made the pivot.I wonder if this lower RBA rate is not already impacting the AUD greatly.
If you look at the last hours:US market etc, it is following a well used scenario
US Market great jump, USD falling against euro, British pound, yen etc BUT not the AUD
This could be the possible next step.So, do we now expect a breather in the rates rises till perhaps the feb meeting so that they can see what impact the previous rate rises have on the inflation?
NOPE !! i was sleeping all through it ( and that horse race )Are we all waiting with bated breath ???
yep , i mostly agree , if the RBA really wanted to tackle inflation ( above all ) it would have moved 0.5% or more ( and tried the 'shock factor' )So, do we now expect a breather in the rates rises till perhaps the feb meeting so that they can see what impact the previous rate rises have on the inflation?
It may stop people buying lots of things, including houses, but its questionable as to whether it will stall the price increases.
mick
some Central Banks are truly independent ( Russia and Turkey for two , but non-aligned are getting rarer )Keep in mind the RBA can hike monthly whereas the Fed can't. Central Bankers have also publicly stated that they're acting in unison.
The shift to smaller rates may be part of a global strategy but it could also be an issue of practicality rather than a signal for a true pivot.
I still think Powell's statement will be critical, but I'm admittedly betting on a rally.
Are you saying that the Australian & US central/federal banks are not independent?some Central Banks are truly independent ( Russia and Turkey for two , but non-aligned are getting rarer )
the US Fed will be under pressure to try and save the ( Dem) mid-terms , so that pause ( if it happens ) could more political than strategic
much of the global economy has it's foot in the bear trap and mommy bear and the cubs are coming back to see what they caught
since the certain very large banks are shareholders ( and it is difficult to see WHICH very large banks are the share-holders ) one could call ( most of ) them a cabal cooperating within the BIS frameworkAre you saying that the Australian & US central/federal banks are not independent?
That the RBA does it more often would naturally bias them toward smaller increments if there's some aim to keep roughly in step with other central banks.The shift to smaller rates may be part of a global strategy but it could also be an issue of practicality rather than a signal for a true pivot.
They are playing at as safe as possible, did anybody see the media headlines? According to the media .25 was a horror rate increase ?That the RBA does it more often would naturally bias them toward smaller increments if there's some aim to keep roughly in step with other central banks.
That alone could explain the decision.
since the certain very large banks are shareholders ( and it is difficult to see WHICH very large banks are the share-holders ) one could call ( most of ) them a cabal cooperating within the BIS framework
they are mostly detached from the Federal Government ( Australia , UK , US and several others ) with politicians appointing the chair ( for the US Fed ) and governor ( in Australia and UK )
but certain WEF presentations shows the senior ( central ) bankers working towards a defined agenda ( not national policy )
Turkey CB independent. What are you smoking ?? Eradogan controls the CB and just reduced IR. His personal thesis is that he does not believe increasing IR will reduce inflation. I’ll find the reference for you sometime. I believe he has changed/removed some CB officials recently because he did not agree with their strategies.some Central Banks are truly independent ( Russia and Turkey for two , but non-aligned are getting rarer )
the US Fed will be under pressure to try and save the ( Dem) mid-terms , so that pause ( if it happens ) could more political than strategic
much of the global economy has it's foot in the bear trap and mommy bear and the cubs are coming back to see what they caught
There are no “shareholders” of the federal reserve in the way that we normally understand the word shareholders.since the certain very large banks are shareholders ( and it is difficult to see WHICH very large banks are the share-holders ) one could call ( most of ) them a cabal cooperating within the BIS framework
they are mostly detached from the Federal Government ( Australia , UK , US and several others ) with politicians appointing the chair ( for the US Fed ) and governor ( in Australia and UK )
but certain WEF presentations shows the senior ( central ) bankers working towards a defined agenda ( not national policy )
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