RBA Governor Michele Bullock rejects suggestion there's too much government spending in Australia, saying things could be 'much worse' without it
3 months, 3 weeks ago

RBA Governor Michele Bullock rejects suggestion there's too much government spending in Australia, saying things could be 'much worse' without it

ABC  

Reserve Bank Governor Michele Bullock has rejected the argument there's too much government spending in Australia right now, saying it is helping to keep the economy on an "even keel" and things could be much worse without it. Ms Bullock said the private sector was growing "very slowly" in Australia at the moment, with consumption per capita declining, and government spending was actually providing crucial support. Australia's labour markets are tighter than peer economies In her speech on Thursday evening, Ms Bullock said the RBA Board had kept Australia's cash rate target sitting at 4.35 per cent for a little over a year now. She said you could see evidence of that restrictiveness by looking at Australia's household sector, which currently had "very weak growth in consumption, a decline in per capita consumption, and very low dwelling investment." Ms Bullock said looking ahead for Australia, RBA staff were still expecting inflation to return sustainably to the midpoint of the Bank's 2-3 per cent target range by late 2026, as restrictive financial conditions gradually brought the economy and labour market into better balance.

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History of this topic

Has Australia's economy turned the corner? Angus Taylor has a warning
1 week, 6 days ago

Has Australia's economy turned the corner? Angus Taylor has a warning

ABC  

Economists say Australia has turned a corner. Last week, he said labour productivity was still "disastrous" in Australia and the purchasing power of our wages had deteriorated "disastrously" since Labor won the election in 2022. By the time the 2022 election was held, the "real" value of our wages had already deteriorated so much that our wages were buying less …

Why the bout between the Reserve Bank and the federal government is about to heat up
3 months, 2 weeks ago

Why the bout between the Reserve Bank and the federal government is about to heat up

ABC  

There's an old adage that oppositions don't win elections, governments lose them. RBA Governor Michele Bullock says Australia's strategy of reducing inflation without stoking too much unemployment is part of the reason why it looks different to peer economies right now. RBA unlikely to react to October inflation data Photo shows Household money pic Australia's inflation rate remained steady in …

RBA governor Michele Bullock says she didn't 'caution' the government about its spending
4 months, 2 weeks ago

RBA governor Michele Bullock says she didn't 'caution' the government about its spending

ABC  

Reserve Bank governor Michele Bullock has rejected suggestions she cautioned the federal government about its spending behaviour, amid media reporting that she had warned the treasurer to exercise restraint in the lead up to next year's election. The government's attitude 'is the right one' "What I've been observing is that the private sector in Australia at the moment is very …

RBA governor Michele Bullock gives blunt spending warning to Treasurer Jim Chalmers as election nears
4 months, 2 weeks ago

RBA governor Michele Bullock gives blunt spending warning to Treasurer Jim Chalmers as election nears

ABC  

Treasurer Jim Chalmers has received a blunt warning from Reserve Bank of Australia governor Michele Bullock about the inflationary consequences of any potential splashy pre-election spending promises as she left the door open to even higher interest rates. Mr Chalmers said in the wake of Labor's Queensland election loss, the coming federal election "was never going to be — from …

No RBA rate cut yet, but Governor Bullock is about to find the pressure overwhelming
5 months, 3 weeks ago

No RBA rate cut yet, but Governor Bullock is about to find the pressure overwhelming

ABC  

Who'd want to be Reserve Bank Governor Michele Bullock? Reserve Bank keeps interest rates on hold at 4.35pc Photo shows Reserve Bank of Australia generic The RBA has kept interest rates on hold at 4.35 per cent, saying inflation is still too high to start cutting rates. The Reserve Bank board has decided to keep the cash rate steady at …

Is it the Reserve Bank's fault that some people might have to sell their homes?
6 months, 2 weeks ago

Is it the Reserve Bank's fault that some people might have to sell their homes?

ABC  

Have some people forgotten? RBA governor Michele Bullock says more people are seeking help from community organisations as the economy slows down, but the fight against inflation must be won. Ms Bullock told her audience that she knew higher rates were contributing to pain for some people at the moment, but the RBA's job was to get inflation lower, because …

Prime minister affirms 'respect' for Reserve Bank after Wayne Swan blasts its interest rates strategy
6 months, 2 weeks ago

Prime minister affirms 'respect' for Reserve Bank after Wayne Swan blasts its interest rates strategy

ABC  

Prime Minister Anthony Albanese has defended the Reserve Bank of Australia after former Labor treasurer Wayne Swan likened its monetary policy strategy to "punching itself in the face". In an interview on Nine on Friday morning, Mr Swan accused the RBA of "putting economic dogma over rational decision making," after governor Michele Bullock repeated on Thursday that she did not …

Reserve Bank governor Michelle Bullock is called out for cold-hearted comments by Jason Clare
6 months, 2 weeks ago

Reserve Bank governor Michelle Bullock is called out for cold-hearted comments by Jason Clare

Daily Mail  

Australia's top banker has been slammed by a senior Labor minister for suggesting borrowers may have to 'sell their homes' to cope with aggressive rate hikes. Reserve Bank Governor Michele Bullock has been slammed after warning households may have to 'sell their homes' due to rising interest rates Education Minister Jason Clare criticised the comments, stating, 'I don't want anyone …

More people are seeking help as Australia's economy slows down, RBA governor acknowledges
6 months, 2 weeks ago

More people are seeking help as Australia's economy slows down, RBA governor acknowledges

ABC  

Reserve Bank governor Michele Bullock says she is aware that more people than usual are seeking help from community organisations as Australia's economy slows down and unemployment rises. And the number of owner-occupiers with variable-rate mortgages who are in a "particularly challenging situation" is also rising, but the RBA is doing what it can to bring inflation down, re-balance the …

The RBA is making confusion about inflation and the cost of living even worse
6 months, 3 weeks ago

The RBA is making confusion about inflation and the cost of living even worse

ABC  

There's a paradox about the way we respond to threats to the cost of living. At the same time, when the cost of living climbs enough to push inflation beyond the Reserve Bank's target, the bank pushes up interest rates in an attempt to drive measured inflation down. Sharp interest rate increases are a problem The response of the Reserve …

RBA boss Michelle Bullock reveals what will spark another rate hike - as she makes a heartbreaking admission
9 months, 2 weeks ago

RBA boss Michelle Bullock reveals what will spark another rate hike - as she makes a heartbreaking admission

Daily Mail  

The Reserve Bank's governor says letters from struggling borrowers make for tough reading, but push the central bank to achieve its goals to help Australians. Michele Bullock acknowledged the pressure on mortgage-holders from higher interest rates and told a parliamentary hearing it was 'what's driving us to try and make sure that we keep on this narrow path'. Reserve Bank …

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits
9 months, 3 weeks ago

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits

Live Mint  

-- Australia’s inflation is showing persistent strength and weighing heavily on the finances of some households, a senior Reserve Bank official said, highlighting the limits to further interest-rate increases. “The board are absolutely focused on the fact that inflation is clearly still above the target band,” RBA Assistant Governor Sarah Hunter said at a conference in Sydney on Thursday, referring …

RBA governor Michele Bullock says she doesn't agree with IMF that Australia needs higher interest rates
1 year, 1 month ago

RBA governor Michele Bullock says she doesn't agree with IMF that Australia needs higher interest rates

ABC  

Reserve Bank governor Michele Bullock says she doesn't agree with the International Monetary Fund that Australia should be lifting interest rates even higher. Earlier this week, the RBA board decided to keep Australia's cash rate steady for another six weeks, at 4.35 per cent, saying there were "encouraging signs" that inflation was falling as required. RBA keeps interest rates steady …

Michele Bullock: The one glaring word missing from Reserve Bank boss' speech as she says inflation crisis is 'homegrown' - and issues a grim warning about interest rates to Australians
1 year, 4 months ago

Michele Bullock: The one glaring word missing from Reserve Bank boss' speech as she says inflation crisis is 'homegrown' - and issues a grim warning about interest rates to Australians

Daily Mail  

Reserve Bank governor Michele Bullock has warned Australia's skyrocketing inflation is a 'homegrown' issue but failed to address concerns that increased immigration is worsening the crisis. Reserve Bank governor Michele Bullock admitted Australia's skyrocketing inflation is a 'homegrown' issue The RBA is considering ways to bring Australia's inflation, currently running at 5.4 per cent, back to its 2 to 3 …

Michele Bullock says RBA 'will not hesitate' to increase rates if inflation takes longer than expected to return to target
1 year, 4 months ago

Michele Bullock says RBA 'will not hesitate' to increase rates if inflation takes longer than expected to return to target

ABC  

Reserve Bank of Australia governor Michele Bullock says the central bank "will not hesitate" to increase the cash rate over fears inflation could take longer to return to target than its current "late 2025" forecast. Key points: The RBA has left the cash rate on hold at 4.1 per cent since June as inflation began to ease But governor Michele …

Reserve Bank keeps interest rates on hold but many more Australians to soon hit breaking point
1 year, 5 months ago

Reserve Bank keeps interest rates on hold but many more Australians to soon hit breaking point

ABC  

The Reserve Bank of Australia held its meeting today — the first chaired by new governor Michele Bullock – and economists and markets were right in widely tipping that it would keep interest rates on hold. Some fear this "higher for longer" interest rate environment that central banks have warned of could mean we soon hit a breaking point. The …

Michele Bullock says climate change will force RBA to rethink how to manage inflation, after being interrupted by protesters
1 year, 6 months ago

Michele Bullock says climate change will force RBA to rethink how to manage inflation, after being interrupted by protesters

ABC  

Protesters have interrupted the opening remarks of a speech being given by incoming RBA governor Michele Bullock, taking aim at previous comments about how she wants to see the unemployment rate increase to 4.5 per cent. Key points: Michele Bullock says climate change will require the RBA to reassess how best to control inflation A recent review of the RBA …

Next Reserve Bank of Australia governor Michele Bullock's brutally honest interest rate comments
1 year, 8 months ago

Next Reserve Bank of Australia governor Michele Bullock's brutally honest interest rate comments

Daily Mail  

Michele Bullock said 'easier just to jack up interest rates' The Reserve Bank's next governor Michele Bullock recently delivered a frank 11-word sentence that is set to shock every Australian with a home loan. The Reserve Bank's next governor Michele Bullock delivered a frank 11-word sentence that is set to shock every Australian with a home loan In her capacity …

Does everyone welcome the Reserve Bank overhaul?
1 year, 11 months ago

Does everyone welcome the Reserve Bank overhaul?

ABC  

The push to overhaul the Reserve Bank of Australia could be a "watershed moment" in Australian economic policy, some economists say. The Australian Council of Social Service said it would be a "hugely important step" when the RBA had to give equal weight to its inflation target and full employment when setting interest rates. RBA says some changes won't be …

Reserve Bank flags 'further tightening' to tame inflation after leaving interest rates on hold at 3.6pc, ASX closes higher
1 year, 11 months ago

Reserve Bank flags 'further tightening' to tame inflation after leaving interest rates on hold at 3.6pc, ASX closes higher

ABC  

The problems in the global banking system, including the bail out of global banking giant Credit Suisse, and the collapse of US tech lender Silicon Valley Bank, have raised fears about another global financial crisis. But Reserve Bank governor Philip Lowe is trying to calm the horses at home: "The Australian banking system is strong, well capitalised and highly liquid.". …

The Australian Greens say the Reserve Bank needs to be more democratically accountable
2 years, 4 months ago

The Australian Greens say the Reserve Bank needs to be more democratically accountable

ABC  

The Reserve Bank and the federal government need to jointly deploy inflation policy, using different tools to overcome different outbreaks of inflation, the Australian Greens say. Key points: The Reserve Bank should be helping to direct the flow of credit in Australia's economy to more productive ends It should help governments to transition to a low emission economy Monetary policy …

Reserve Bank warns Australians to brace for tough years ahead to get inflation under control
2 years, 4 months ago

Reserve Bank warns Australians to brace for tough years ahead to get inflation under control

ABC  

The Reserve Bank expects a couple of tough years for Australians, with real wages continuing to fall as inflation persists and unemployment starts to rise. Key points: RBA raises its inflation forecasts, with a peak of 8 per cent in December with the CPI still growing at 3.2 per cent at the end of 2024 Wages growth is expected to …

RBA deputy governor Michele Bullock says outlook for global economy is 'quite worrying'
2 years, 6 months ago

RBA deputy governor Michele Bullock says outlook for global economy is 'quite worrying'

ABC  

The outlook for the global economy is "quite worrying" and it has implications for Australia, a Reserve Bank official has warned. Key points: The RBA says its emergency bond-buying program broadly achieved its aims Deputy governor Michele Bullock says there are problems in the global economy that could threaten Australia's recovery The RBA's ability to create money supported the economy …

It's the last taboo in central banking. So will the RBA review look at how money is created?
2 years, 7 months ago

It's the last taboo in central banking. So will the RBA review look at how money is created?

ABC  

Last week, the federal government announced its plan to hold a review of the Reserve Bank of Australia. Well, in late 2020, former prime minister Paul Keating said there was no reason why the RBA couldn't just buy Australian government bonds directly from the AOFM and bypass the secondary market altogether. He said that kind of direct monetary financing of …

The RBA review is set to examine targeting inflation with interest rates. So has it served Australians well?
2 years, 8 months ago

The RBA review is set to examine targeting inflation with interest rates. So has it served Australians well?

ABC  

The federal government's review of the Reserve Bank has the potential to be good. That regime shift also saw the RBA becoming more "independent" from government, which meant it could make decisions about lifting or cutting interest rates without political interference. The Campbell Review in 1981 advised against absolute statutory independence, saying monetary policy had to be democratically accountable: "Proposals …

New Commonwealth Bank forecasts on RBA cash rate
2 years, 9 months ago

New Commonwealth Bank forecasts on RBA cash rate

Daily Mail  

NOVEMBER: Up 0.25 percentage points to 2.1 per cent SEPTEMBER: Up 0.25 percentage points to 1.85 per cent AUGUST: Up 0.25 percentage points to 1.6 per cent JULY: Up 0.5 percentage points to 1.35 per cent Read articles that feature this panel Grim warning for Australia with 18 per cent house price falls predicted as interest rates keep rising 'more …

Reserve Bank of Australia warning of more interest rate rises as inflation soars
2 years, 10 months ago

Reserve Bank of Australia warning of more interest rate rises as inflation soars

Daily Mail  

Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated. Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated On Friday the 13th last week, …

We asked 13 economists how to fix the economy. All back the RBA governor over the Treasurer
5 years, 4 months ago

We asked 13 economists how to fix the economy. All back the RBA governor over the Treasurer

ABC  

Thirteen leading economists have declared their hands in the stand-off between the Government and the governor of the Reserve Bank over the best way to boost the economy. There is plenty of room for fiscal stimulus, particularly infrastructure spending I agree with the emerging consensus that monetary policy is no longer effective when interest rates are so low It is …

Scott Morrison and RBA under pressure as interest rate cuts alone struggle to keep economy afloat
5 years, 5 months ago

Scott Morrison and RBA under pressure as interest rate cuts alone struggle to keep economy afloat

ABC  

Between a rock and a hard place — it's an expression that increasingly applies to Australia's economy and the policymakers in charge of it. The Reserve Bank's latest interest rate cut is emblematic of the dilemma, even as the Treasurer and RBA governor tried to downplay it a few months ago. A not-too-subtle hint that the Reserve Bank felt — …

RBA keeps interest rates on hold, giving a cooling economy the benefit of the doubt
6 years ago

RBA keeps interest rates on hold, giving a cooling economy the benefit of the doubt

ABC  

The Reserve Bank has given the Australian economy the benefit of the doubt, leaving interest rates on hold despite mounting evidence of a serious slowdown. Key points: RBA maintains the economy is strong, supported by business investment and government spending Reiterates its forecast for 3pc growth this year Main risks to the economy are weak household income and falling house …

RBA holds interest rates at historic low of 1.5 pc
7 years, 10 months ago

RBA holds interest rates at historic low of 1.5 pc

ABC  

The Reserve Bank has left the official cash rate at the historic low of 1.5 per cent. Key points: Interest rates have been unchanged since August last year RBA governor Philip Lowe says he expects a gradual increase in inflation Accompanying statement did not indicate whether there would be future cuts or rises The hold was widely expected, and the …

RBA boss Philip Lowe sets the agenda by airing Australia's economic dirty laundry
8 years ago

RBA boss Philip Lowe sets the agenda by airing Australia's economic dirty laundry

ABC  

"If you don't like how the table is set, turn over the table" — Frank Underwood, House of Cards. Following the end of the mining investment boom, the RBA has cut interest rates to the record lows of 1.5 per cent in order to keep the economy ticking over. The governor rightly pointed out that despite record low wage growth …

RBA governor Philip Lowe hits out at protectionism, urges investment in infrastructure
8 years, 1 month ago

RBA governor Philip Lowe hits out at protectionism, urges investment in infrastructure

ABC  

The governor of the Reserve Bank of Australia has taken a swipe at the recent global trend towards protectionism and urged the Federal Government to invest more in infrastructure to help alleviate tensions resulting from Australia's high population growth. Housing affordability 'an increasingly important issue' The governor also strayed into the politically contentious area of Australia's high migration intake and …

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