Category Archives: Banks

Financial Stability and Mortgage dynamics

My argument for a May rate cut by the RBA basically boils down to the observation that inflation is very low and that there’s no financial stability reason not to cut — plus the judgement that the very low pace … Continue reading

Posted in AUD, Banks, Housing, monetary policy, RBA, Uncategorized | 6 Comments

The regulatory bond-bid (+ bank funding)

In my recent post regarding central bank balance sheet operations and bond market term premium (see how QE works), there’s a rather large unexplained divergence between model and reality in the most recent period. A reason for this may be the … Continue reading

Posted in Banks, Bond Market | Tagged , , | 2 Comments