Why Central Banks Are Suddenly Letting Markets Do the Tightening for Them

Why Central Banks Are Suddenly Letting Markets Do the Tightening for Them

Central banks are suddenly more comfortable waiting because markets have already done part of their job for them. Reuters reported that the Iran war and oil shock have pushed up borrowing costs, widened credit spreads, lifted mortgage rates, and knocked down stock prices. That combination tightens financial conditions in much the same way a rate … Read more

Australia’s Rate Outlook Just Got Murkier and Oil Is a Big Reason Why

Australia’s Rate Outlook Just Got Murkier and Oil Is a Big Reason Why

Australia’s rate outlook got messier in March because the Reserve Bank of Australia is no longer dealing with a normal inflation problem. Reuters reported that the RBA raised rates by 25 basis points to 4.1% at its March meeting, reversing two of the three cuts made in 2025. But the bigger point was the split … Read more