From 2012-2019 central banks should have been unwinding stimulus, but instead they increased it and created a bubble in financial markets and the economy.
The RBA’s decision to cut rates on March 4th seems more about appearances than cold economic logic.
The RBA cut the Cash Rate on October 1st, but it has again failed to put forward a decent argument for why another cut is required.
The retail buyer base for bank hybrids is taking far more risk to get the same return as institutions buying AAA rated Australian RMBS
Central banks are using a monetary policy hammer when economies need a screwdriver. Here’s what they should do instead.
For bank hybrid investors, there are some obvious alternatives that are both lower risk and have higher expected returns
The RBA is ignoring the mounting evidence of the damage caused by low interest rates and the counterproductive outcomes from its actions.
APRA has recommended Australian banks hold more tier 2 capital. This submission covers key measures aimed at reducing the risk of banks needing bailouts.