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Haha that is a big win. Ditto pinkboys pic.

Haha I agree with this part Marty.

I don't either. Inflation targeting has an anchoring effect on inflation. One of the biggest drivers of inflation is expectations. A credible central bank with a credible inflation target has the ability to anchor inflation expectations. Its why there's so much effort put into...

Yep - thats all they do have on their website. Quick google search and you'll be able to find older rates, noting that DMO was done differently back in those days and you'll find large variances in month to month interbank rates. I'm not sure theres any merit to pointing to a downward trend...

Interesting chart - convenient starting point. Inflation targetting has a big role in anchoring expectations - implied in the lower volatility in the cash rate over recent years (compared esp to the 70s).

What do you mean by 'limited quantitiy'...an issue with the supply of credit in funding markets?

Interesting call on the fixed rates. I highly doubt this will spark any action from the RBA next meeting - it was expected. Pretty sure the latest statement even makes reference to a rise in unemployment being forecasted. I'd be surprised if they even shifted communication back down to...

Agree fixing on the basis of interest rate predictions may not be fruitful (its hard for the best economists to know which way rates are heading with any certainty). Although jobless numbers isnt all gloom and doom, the headline figure looks bad but behind it is a rise in participation (good...

Yep definitely - as mentioned, fixed rates have break fees. For 5 year fixed rates, these fees can be quite high. It shouldn't only be an expectation calc on future interest rates, it should fit in with overall strategy. Obviously that calc is a consideration - but not a be all end all.

No problem Of the Vultures. One way to think of it is a supermarket analogy. If farmers grow lots of tomatoes, and they reduce the cost of tomatoes to supermarkets, the lower costs are often passed onto consumers through cheaper tomatoes. The cost of future tomatoes doesn't matter in the...

Interesting - thank you for sharing. I usually don't shy away from any asking for any macro interpretations, especially when it comes to developments in international credit markets :) 1. Banks main funding source is via deposits - around 50% and has been rising since the GFC (I suspect it...

Not sure its an indication of banks predicting what will happen to the RBA's cash rate. The banks Chief Economists have public interest rate predictions, and from memory, most have assumed this is the bottom of the current rate cutting cycle. Pretty sure Evans (Westpac) is the most dovish, and...