The Reserve Bank of Australia Explained

Thanks to Bruce for the link to the following video. The parody of the RBA’s gold holdings is very topical in light of their recent admission that the RBA keeps 99.9% of our their gold reserves in the Bank of England (see post).

Shaun Micallef from 2008, please note the reference to rising interest rates is no longer valid.

6 comments on “The Reserve Bank of Australia Explained
  1. snoop diddy says:

    RBA Broad Money Aggregates balance sheet continues to grow – AUD1.509trillion in October (last updated figures)

  2. BankingThiefs says:

    WRONG! O:40 “Higher interest rates, houses get more expensive” WRONG!
    It’s the cost of money that gets more expensive. The cost of housing rises with low interest rates, as cheap money chases more assets. When interest rates were at their highest in the 1980s at around 19% house prices were at their lowest.

  3. BankingThiefs says:

    To illustrate, same house, same 25 year mortgage, real house prices…
    Rate 7%, house value £50,000 = £353pm repayment
    Rate 2%, house value £150,000 = £636pm repayment
    That is what low interest rate got you.

  4. Gregers Werle says:

    RBA front for BOE. It was funny ’cause it’s true.

    Housing go Pop!

  5. Bruce says:

    Hey I know that Bruce guy!

    Micallef is a legend.

  6. SLA-mdunk says:

    Slippery, eh?

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