The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach
This article examines the determinants of Reserve Bank of Australia (RBA) target rate decisions in the period following the introduction of inflation targeting (1993–2012). A choice modelling approach reveals asymmetry in RBA policy such that the RBA is more concerned about inflation rising above th...
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| Format: | Journal Article |
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Wiley-Blackwell Publishing Asia
2013
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| Online Access: | http://hdl.handle.net/20.500.11937/14439 |
| _version_ | 1848748622967996416 |
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| author | Smales, Lee |
| author_facet | Smales, Lee |
| author_sort | Smales, Lee |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article examines the determinants of Reserve Bank of Australia (RBA) target rate decisions in the period following the introduction of inflation targeting (1993–2012). A choice modelling approach reveals asymmetry in RBA policy such that the RBA is more concerned about inflation rising above the target band, and the threshold for cutting rates is greater than that required to hike rates. While there is evidence of the RBA following mandated objectives, the likelihood of rate reductions has increased following the appointment of Glenn Stevens, although his term as Governor has coincided with extraordinary economic conditions. |
| first_indexed | 2025-11-14T07:07:59Z |
| format | Journal Article |
| id | curtin-20.500.11937-14439 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:07:59Z |
| publishDate | 2013 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-144392017-09-13T14:04:53Z The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach Smales, Lee Inflation targeting RBA target rate decision This article examines the determinants of Reserve Bank of Australia (RBA) target rate decisions in the period following the introduction of inflation targeting (1993–2012). A choice modelling approach reveals asymmetry in RBA policy such that the RBA is more concerned about inflation rising above the target band, and the threshold for cutting rates is greater than that required to hike rates. While there is evidence of the RBA following mandated objectives, the likelihood of rate reductions has increased following the appointment of Glenn Stevens, although his term as Governor has coincided with extraordinary economic conditions. 2013 Journal Article http://hdl.handle.net/20.500.11937/14439 10.1111/1475-4932.12063 Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Inflation targeting RBA target rate decision Smales, Lee The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach |
| title | The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach |
| title_full | The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach |
| title_fullStr | The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach |
| title_full_unstemmed | The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach |
| title_short | The Determinants of RBA Target Rate Decisions: A Choice Modelling Approach |
| title_sort | determinants of rba target rate decisions: a choice modelling approach |
| topic | Inflation targeting RBA target rate decision |
| url | http://hdl.handle.net/20.500.11937/14439 |