New RBA Governor announced - Michele Bullock

[Number37]

As someone who's not fully around how the rates work or worries to much about what i cannot control, will sacking him mean the rates will drop, or is it all about optics.

Most people would only want to see the rates drop, and more than likely don't give a rats who's making the announcement.

Rates won't be dropping anytime soon.
Brace yourself for another rate hike or 2 before the end of the year.

 

[The King!]

How to appear to do something without doing anything

 

[Power Raid]

How to appear to do something without doing anything

I don't understand this position. The idea of an independent agency like the RBA should not have interference from government.

 

[Carn The Berries]

I don't understand this position. The idea of an independent agency like the RBA should not have interference from government.

It's absolutely doing something without doing anything. If the thought process is the RBA isn't doing their job as well as they should then why would you promote the 2IC? If the government believes the RBA is doing a good job, why would you turf out the boss before he is ready to go?

Complete and utter political move, be seen to be taking action (for those in Jo Public who think that the RBA are evil and unnecessarily making people's lives harder) while actually doing nothing of the sort.

Excellent political strategy by Albo, but nothing more...

 

[Saint]

The RBA is setting targets that it then tries to convince others that they need to follow. Lowe's RBA had made so many wrong predictions that their ability to influence direction of the targets was severely affected. Forget about mortgage rates, look at long-term treasury bills etc.

People and banks are supposed to follow the RBA because the RBA is supposed to be fairly accurate.

If Lowe has to take the fall so that the RBA regathers a little bit of credibility, that's a good thing.

I agree that it probably would have been better if even more change came by appointing an outsider to test all the RBA assumptions which have been going on for 20 years and probably out-of-date.

I don't think a treasury person would be the right choice other. Somehow attract a senior person from a big international investing house (for a big pay cut?)

 

[Cap]

I wonder how it would be received if an RBA Governer started suggesting what Govt policy might help inflation rather than just interest rate rises

 

[Golden_6]

It's absolutely doing something without doing anything. If the thought process is the RBA isn't doing their job as well as they should then why would you promote the 2IC? If the government believes the RBA is doing a good job, why would you turf out the boss before he is ready to go?

Complete and utter political move, be seen to be taking action (for those in Jo Public who think that the RBA are evil and unnecessarily making people's lives harder) while actually doing nothing of the sort.

Excellent political strategy by Albo, but nothing more...

Lowe has been an incredibly poor communicator to the public. I suspect this might be the reason he was turfed given moving forward, the Governor will be delivering a press conference following each board meeting. The end result might still be the same but the communication needed to be significantly improved.

 

[Number37]

People and banks are supposed to follow the RBA because the RBA is supposed to be fairly accurate.

It is not a question of following, the RBA through the cash rate directly influences the supply of money.
Interest rates are a function of the supply and demand for money.

 

[Saint]

It is not a question of following, the RBA through the cash rate directly influences the supply of money.
Interest rates are a function of the supply and demand for money.

Yes, they do it directly, but are also supposed to influence rates indirectly as well by flagging long-term strategies and directions.

They've been so wrong for basically all of Lowe's tenure that without change, they're just completely ineffective at influencing long-term market prices.

 

[Number37]

Yes, they do it directly, but are also supposed to influence rates indirectly as well by flagging long-term strategies and directions.

They've been so wrong for basically all of Lowe's tenure that without change, they're just completely ineffective at influencing long-term market prices.

Lowe's tenure will be remembered as the time the RBA lost its independence.

 

[Saint]

Lowe's tenure will be remembered as the time the RBA lost its independence.

LNP told him to shut up and he did. He should have stuck to his guns.

Then he was wrong all the time with his predictions.

 

[Number37]

LNP told him to shut up and he did. He should have stuck to his guns.

Then he was wrong all the time with his predictions.

The predictions were not consistent with the data...because the board lost its independence.

 

[Blue Arrow]

Hard to blame the RBA for the poor state of the economy now Labor have put in their pick.
But they will still do it, because in their deluded little minds it's not ever their fault.

 

[Number37]

Hard to blame the RBA for the poor state of the economy now Labor have put in their pick.
But they will still do it, because in their deluded little minds it's not ever their fault.

The new RBA boss doesn't start in her new role until October, who do we blame until then???
LaYYYYbbbbbAAAAA?
The Voice?
Welfare recipients?
People who don't want to get ripped off working in hospitality?
Woke greenies?
The tooth fairy?
Anyone but the LNP?