Global central banks wield considerable influence over financial markets, and the policy mix central banks deploy can make a big difference to investment strategy success over time. At its heart, investment strategy needs to get the basics of growth, inflation and interest rate trends correct, which ausbiz helps investors understand.
While unabashedly focused on Australian investors, ausbiz looks beyond the Reserve Bank of Australia (RBA) to discuss monetary policy events and influences from the US Federal Reserve, the European Central Bank, China’s PBOC, and our Trans-Tasman neighbour, the Reserve Bank of New Zealand.
What do we want to know from central banks?
When price and economic activity data hits the tapes, the market reaction is proportional to the surprise. A string of stronger than expected inflation data - for example - will trigger higher interest rates and challenge investors to consider value over growth.
Whether central banks sanction or dismiss such market reaction is key to getting the correct investment strategy in place.
As the local trading session comes to life, ausbiz gets investors up to date on what happened in economic data and central bank news through the overnight session to interpret what it may mean for domestic markets. We tell Australian investors what matters when central bankers speak, as personal commentary from the likes of US Federal Reserve Chair Jerome Powell not only are closely monitored, dissected and discussed, but can help set the tone of the day.
The RBA’s monthly monetary policy Board decision drops at 2.30 pm Eastern Time on the first Tuesday of every month, which the ausbiz team covers in-depth going beyond the headlines, drawing on expert guests for instant analysis, and market analysts to walk through any equity and currency reaction.
The ausbiz team drills beyond all the central bank jargon to present clearly articulated views about where the path is from here.
Why central bankers matter
It’s not just about central bank decisions. It’s also about the guidance. Thanks to record low-interest rates worldwide, central bankers now use forward guidance to shape policy expectations. This means that at any time, a speech, tweet or Q and A can move markets.
Our ausbiz experts collectively have decades of experience, navigating the central bank responses to the 1997 Asian Crisis, the 1999 dot.com boom and bust, the GFC and now the coronavirus pandemic.
Central Banks on ausbiz
Central bank speaks and moves the markets. At ausbiz, we make sense of all the jargon and break down what it means for your investment strategy.
Don’t play catch-up. Sign-up to ausbiz or download the app for central bank news and investing ideas brought to you by the experts, anytime and anywhere.
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