When Interest Rates Stop Working

If the academics have found anything, it’s that interest rates have little bearing on growth at all. In his 2018 Reconsidering Monetary Policy paper, Richard Werner finds the relationship between interest rates and growth is actually positive…meaning interest rates and growth move together.

RBA Interest Rates Remain Unchanged: A Look Ahead

The RBA  left the interest rate unchanged yesterday at 1.5%. This is in line with a policy that has been in place since August 2016.The longer-term picture for interest rates, however, could involve one or possibly two 25 basis point cuts this year.
Money Morning Australia