The Bank of England’s latest communication strategy has been dubbed “fuzzy guidance” - but how much should central banks reveal? Image sourced from www.shutterstock.com

Forward or fuzzy: just how much should central banks reveal?

The effective death of the forward guidance strategy offered by the Bank of England came with the announcement in early February that there would be a switch to a less quantitative approach. Dubbed by…
Reserve Bank governor Glenn Stevens said today that the bank’s board judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy. AAP/Alan Porritt

RBA cuts interest rates to 2.75%: the experts respond

The Reserve Bank of Australia today cut the cash rate by 25 basis points to a record low of 2.75%, but some experts have questioned whether the central bank cut too soon. In a statement issued today, central…
Down? Stay as it is? Commentators are divided about the direction of the cash rate. Image sourced from www.shutterstock.com

Stay the course with interest rates: shadow board

The Reserve Bank of Australia should leave interest rates unchanged this month according to the consensus of Shadow Reserve Board members. Amid market uncertainty over whether the RBA board may choose…
Despite continuing unrest in Europe - particularly Cyprus - the global economy has firmed, say Shadow Reserve Bank commentators.

RBA: rates should hold, with a gradual return to neutral

The consensus of the nine members of the Shadow Board is that the Reserve Bank of Australia should leave interest rates unchanged from March at 3.00%. But the balance of risks implies rates should rise…
A number of Shadow Bank commentators point to a slight uplift in the housing market as a sign that interest rates should rise in the medium term.

Interest rates should stay on hold, for now

No change remains the consensus of the nine members of the Shadow Board in the Reserve Bank of Australia holding interest rates unchanged from February at 3.00%. But rates need to rise significantly within…
A blunt instrument: the case for interest rates to rise is strengthened by rising unemployment and a persistently high Australian dollar which has defied previous cuts. AAP

Rate cut unlikely, but the forward path for interest rates will be up

The Shadow Reserve Board, an initiative of the Centre for Applied Macroeconomic Analysis (CAMA) made up of eminent industry and academic economists, returns this month. Reserve Bank of Australia board…
A cut in Australia’s cash rate tomorrow has been factored in by most economic practitioners, but Shadow Board academics are split over whether it should. AAP

Academics v practitioners: split views within the Shadow Board

Many economists think the RBA Board will cut the cash rate this month. With commodity prices projected to be weakening, financial markets suggest a rate cut is likely. Mind you, many practitioners suggested…
The CAMA Shadow Board believes the Reserve Bank of Australia should leave the cash rate unaltered. AAP

Interest rates should stay put

The Reserve Bank of Australia should leave the cash rate unchanged tomorrow, with little evidence suggesting an interest rate cut is justified, according to members of the CAMA Shadow Board. The Shadow…
There are as many compelling reasons for the Reserve Bank to cut interest rates as there are to leave them unchanged. AAP

RBA should hold steady on interest rates — but when should it cut?

Predicting the Reserve Bank’s interest rate decision for October appears to be particularly tough for economic commentators. A decline in iron ore prices, compounded with a stubbornly high dollar, has…
The Reserve Bank of Australia is expected to keep the cash rates unchanged tomorrow: but prominent economists say the case for a cut may be firming. AAP

Hold ‘em: but case for interest rate cut strengthens

CAMA’s Shadow Board, which gives its views ahead of the decision by the Reserve Bank of Australia, continues to support the current setting of the cash rate at 3.5%. But economists are seeing a greater…
Some commentators have suggested that the RBA should intervene in currency markets to tame the Australian dollar. But is this a wise move? betta design

Should the RBA act on the high Australian dollar? Experts respond

As foreign central banks continue to park their money in our triple-A rated bonds, the Australian dollar continues its inevitable ascent. The dollar traded as high as US106.03¢ after the RBA left the interest…
The reserve bank should hold the cash rate steady tomorrow – but CAMA’s Shadow board members see greater uncertainty long term. AAP

RBA should hold rates, but longer term uncertain

_The Conversation, in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA), presents the monthly findings of the Shadow Board, prior to the meeting of the Reserve Bank of Australia Board…
The Reserve Bank of Australia should keep interest rates on hold, say a group of influential economists. AAP

Keep rates on hold, says CAMA shadow board

_The Conversation, in conjunction with the Centre for Applied Macroeconomic Analysis (CAMA), will present the monthly findings of the Shadow Board, a day before the Reserve Bank of Australia Board meets…
Publishing long-term interest rate projections can allow the Reserve Bank to operate with greater transparency. AAP

A route to greater transparency and independence for the RBA

Today, all eyes will be on the Reserve Bank amid speculation that the cash rate will be eased by at least 25 basis points. The RBA has often faced pressure from politicians and business leaders to reduce…
Reserve Bank of Australia Governor Glenn Stevens: knowing how individuals board members think is important. AAP

Shadowing the RBA: uncertainty matters when it comes to interest rates

Monetary policymaking is imperfect. When board members of a central bank such as the Reserve Bank of Australia sit down to set the appropriate target cash rate each month - as they did this week - there…

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