Reserve Bank of Australia Governor Glenn Stevens, with a pay level set more than four times that of Ben S. Bernanke at the Federal Reserve, oversees a bank that’s less transparent than Poland’s in setting policy.
The biggest swings in Australian interest-rate expectations in more than two years have left bond investors concluding the central bank will hold borrowing costs to sustain economic growth amid quickening inflation.
Reserve Bank of Australia Governor Glenn Stevens signaled he will raise interest rates when global risks dissipate, a message dismissed by a bond market seeing an escalation in risks among the nation’s trading partners.
Australia’s economy probably shrank last quarter by the most in two decades as floods inundated coal mines and farmland, a contraction the central bank sees as temporary before growth rebounds in the second half of the year.
The bond market is telling Reserve Bank of Australia Governor Glenn Stevens he doesn’t need to raise the developed world’s highest interest rates any time soon to curb a lending surge and the fastest inflation since 2006.
Australia’s government will end 23 years of spending growth to ease inflation from the biggest mining-investment boom in the nation’s history and plans measures to help companies hurt by a record-high currency.
Travis Marks, a 24-year-old with no college degree, is hitting pay dirt as Australia’s mining bonanza fuels demand for workers. Already making triple the nation’s average salary, he expects to get even richer.
Woolworths Ltd. and Wesfarmers Ltd., Australia’s biggest supermarket chains, may report higher sales because shoppers continue to buy essentials as stalling consumer spending hurts clothing and electronics retailers.