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Lowe stays firm on cash rate outlook

Mortgage Business Lowe stays firm on cash rate outlook By Sarah Simpkins 07 July 2021 The Reserve Bank governor has insisted that Australia is unlikely to reach the prerequisites for raising the cash rate sooner than 2024, despite clashing industry speculation. The statement collided with estimates from CBA and ANZ, among other banks, that the RBA could change rates as soon as 2023 or even 2022. But in an address discussing the central bank’s monetary decision, RBA governor Philip Lowe referred back to its targets for raising the rate, commenting it was “unlikely”. The RBA is aiming for inflation to hit 2-3 per cent, compared with 2020’s 0.87 per cent, and for the yield target to be achieved, which would see the April 2024 bond hit 10 bps.

Don t join the policy error, RBA - MacroBusiness

MacroBusiness Access Subscriber Only Content There are five reasons why the RBA should not tighten monetary policy at all tomorrow. First, commodity prices are going to crash over the next year.  This is already baked in. Current trends in China indicate a renewed structural reform push that includes $1.5tr less new credit this year than last, much of it in commosity-centric growth areas. As well, the global inventory supercycle is peaking and US inflation is going to fall away fast as it does. This will be exacerbated by the recent Fed policy error triggering a strong US dollar, ending the financial bid into commodities.

Sedgwick review into retail bank commissions released

Sedgwick review into retail bank commissions released subscribe A A A review of retail banking product commissions and payments has found that links between remuneration and sales are now rare and industry policies have improved. These and other findings are contained in the Retail Banking Remuneration Review Final Report by former Australian Public Service commissioner Stephen Sedgwick, who compiled the report after being commissioned by the Australia Banking Commission (ABA). In 2016, the ABA commissioned Mr Sedgwick to undertake a large-scale review of remuneration practices for retail banking frontline staff, including product sales commissions and product-based payments in retail banking in Australia.

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