How a Central Bank Fumbled Its Communication
The authority's decision to forgo a widely anticipated interest-rate cut this month left much to be desired, and the RBA's explanations for why it wrong-footed investors have been subpar. Press conferences and the signaling of intent through speeches aren't sidelines. No lesser person than Ben Bernanke, a Nobel laureate and former Federal Reserve chair, observed that successful policy was 98% talk and 2% action.
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