Ian Reynolds
BoJ And The New Governor
Looks like the new BoJ Governor, Ueda, is going to have a hell of a job maintaining the confidence of financial markets. On the day that officials announce that he will be the Japanese Government's choice, Nikkei reports JGB market hits record low liquidity.
Australian Treasurer to RBA Governor: Please Explain
Treasurer Jim Chalmers says Reserve Bank governor Philip Lowe can explain his decision to privately brief traders at the country’s major banks, two days after the central bank surprised markets with a hawkish outlook.
The Australian Financial Review reported exclusively on Saturday that the lunch coincided with a rise in bond yields.
Lowe attended the investment bank’s event after declining to make a public address on the outlook for monetary policy, which he has done after the first RBA board meeting of the year since 2017.
Speaking on ABC TV, Chalmers declined to say whether Lowe was doing his job properly.
“Look, the governor operates independently from the government. I don’t clear his commitments that he makes in his diary.
“I suspect that governors before governor Lowe have met with different players in the market.”
Chalmers said Lowe would go before two parliamentary committees in coming days and could explain his decision.
“I think there’s a broader issue here about how the bank communicates the context for its decisions,” Chalmers said.
He confirmed he would receive a review into the bank’s operations on March 31 and would provide an interim response before the May budget.
Key Economic Indicators This Week
In Australia The Mood Darkens
Another Policy Error by RBA.
The Reserve Bank of Australia is overtly political and had has now made 2 bad policy errors in as many years. Keeping rates too low for too long after COVID and now slowing rate increases too early. Stop listening to voters and start managing the economy properly.
Luckily there will be a change of Governor and restructure of the RBA soon,
"The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary."
RBA Governor Keeping A Very Low(e) Profile
Statement on Monetary Policy (RBA) Feb 2023
Price Hikes Easily Passed On By Corporates
