On Tuesday, 1st October 2019, the Reserve Bank of Australia cut the cash rate to 0.75% in order to stimulate the economy. Their objective was to reduce the unemployment rate to 4.5% and to increase wages. Over dinner that night, my daughter Kate quizzed me and Frank about how that worked. It turns out that it is not as obvious as Dr. Lowe suggests.
I see that the Reserve Bank has dropped the cash rate to 0.75%. What is the cash rate?
It is the rate that the Reserve Bank charges the banks for overnight loans.
It is the basis on which other interest rates are set. For instance, if the ra...
The other day I met my old friends Marcia and Ann for lunch at Babka in Brunswick Street. It was good to catch up again.
Babka is just a couple of blocks away from where Jack Irish’s mates reminisce about the Fitzroy Football Club. When Sasha Lewis and her partner Frieda sold Fitzsimons in Lonsdale Street in the late 80s, they paused briefly and then set up Babka. Frieda has now retired, and Sasha runs it on her own. It has a cult following.
The menu has a Russian theme and the best bread in Melbourne is baked on the premises by Sasha’s son. There are no bookings and patrons wait in line for a...