TLDR: The Reserve Bank is expected to hike the Official Cash Rate by another 50 basis points to what it sees as the ‘neutral’ interest rate of 2.0% later today. The ‘wealth effects’ from the ongoing double-digit falls in key housing markets may well decide how much more is needed. See more of my preview of today’s move below the paywall fold.
Elsewhere in the news overnight and this morning:
Beijing tightened its Covid restrictions as public discontent grows with Shanghai’s lingering lockdowns;
the Nasdaq fell as much as 3.8% after Snap warned diving global macroeconomic forces were hitting advertising; and,
the OECD told the Davos forum its global tax deal will be delayed by a year to 2024.
I’ll be covering today’s Monetary Policy Statement from home while in Covid isolation. I welcome suggestions for lines of inquiry and questions in the comments below.
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