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Australia

RBA Financial Stability Review

The Australian financial system has coped better with the recent strains than have those of many other countries, notes the latest Financial Stability Report from the Reserve Bank of Australia.

Commodity prices prompted RBA rate rise

The likelihood of rampant commodity price growth over the course of 2008 led the Reserve Bank of Australia to hike rates by a quarter point earlier this month, minutes of the March monetary policy meeting reveal.

RBA's Debelle on bond market

Australian banks, having sound balance sheets, have been able to maintain their pre-crisis pace of bond issuance and have continued to directly access wholesale funding throughout the recent period of turmoil, said Guy Debelle, an assistant governor at…

Australia considered bigger rise

Minutes from the February board meeting of the Reserve Bank of Australia show that the central bank considered raising its cash target by a bigger margin than the quarter percentage point rise announced on 5 February.

Dynamic pricing and imperfect common knowledge

This paper by Kristoffer Nimark of the Reserve Bank of Australia introduces private information into the dynamic pricing decision of firms in an otherwise standard new Keynesian model by adding an idiosyncratic component to firms' marginal costs.

Carry trade returns high but losses heavy

Though carry trades in various Asian currencies tend to outperform major stock markets, there is a relatively high frequency of large negative returns, research published by the Bank for International Settlements finds.

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