Debt Ceiling = Fixed (for now)

This morning, Senate Leader McConnell offer the Democrats two paths to resolve the current debt ceiling. 1/ An expedited reconciliation process; and 2/ Allowing Democrats to use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December (my emphasis). Option two probably isn’t that … Read more

RBNZ hikes 25bps, with more to come

As was widely expected (and priced) the RBNZ hiked their OCR 25bps to 50bps at their 6 October meeting. They indicated that there’s more tightening to come, noting rising capacity pressures and the need to reduce monetary policy stimulus to maintain price stability. The Committee agreed that rising capacity pressures would feed through into inflation. … Read more

What might a review of the RBA find?

Gov Lowe’s speech, Delta, the Economy, and Monetary Policy, was in many ways a watershed speech.  Lowe jettisoned the blurry two-point-something inflation language in favour of a firm commitment to get inflation back to the middle of the target range and distanced himself from the financial stability argument for raising rates, by saying explicitly that … Read more