RBA to maintain old fashioned attitude despite the Aussie

By FXStreet With the forthcoming decision from the RBA today, we are prompted to recall the concerns that Yellen put forward in regards to China and global growth having been forewarned of just how uncertain the road ahead is to a systemic global recovery and the difficulties a lender of last resort takes on in these challenging times.

It is now overtly obvious to all observers that there are tough times ahead for monetary policymakers. Times are quite different to back in the beginning of the global financial crisis. I recall those days being back in autumn 2008 and early 2009 where the task of Central Banks was plane and simple; slash interest rates to a low a level as possible (the lowest recorded levels in history) and as fast as it could be done.

Several years on, Central Bankers are facing profound questions as to their policies that are being examined minutely, while no matter how hard they try, their policies don’t seem to be working and markets are losing confidence in them, and there lies the fly in the ointment; the practices and patch work to date of Central Banks is the possible catalyst for the next financial crisis …read more

Source:: FX Street