Australia's central bank governor makes joke, screws everything up

Monetary policy: not very funny

Central bankers shouldn't make jokes, that much is clear. The Governor of the Reserve Bank of Australia, Glenn Stevens, made one yesterday, and it didn't go down well. Here's the joke:

As some of you may know, the Reserve Bank Board meeting was in Brisbane yesterday at which we deliberated for a long time to leave the cash rate unchanged.

A rib-tickler, I'm sure you'll agree. The joke here (and having to explain a joke is never a good sign) is that they didn't do anything – the cash rate stayed at 2.75 per cent – so the thought of deliberating for a long time over it is funny.

Except the problem is 1. that's not really funny at all and 2. what everyone thought he meant is that they seriously considered changing the cash rate, meaning it was more likely to change next time. And given they thought that, they acted on it, selling the australian dollar hard and selling it fast. Via FT Alphaville:

Oh no! The joke was confirmed as such shortly after, but not before a lot of people had lost a lot of money. The contrite deputy governor, Philip Lowe, said today that he'd spoken to his boss:

They were meant to be a light-hearted remark after what, he reports to me, was a very light-hearted introduction. I think some people in the financial markets and perhaps the press misinterpreted the intention of those remarks.

If we're looking for teachable moments here (and we're always looking for teachable moments), there are two to take home. Firstly, in a world where forward guidance is increasingly a standard tool in the central banker's kit, the words they use to communicate are more and more important. They can bring down economies, and should be treated with care.

Secondly, if you are the governor of a central bank, don't try and make off-the-cuff jokes during press conferences. It's likely to go wrong.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Tony Blair won't endorse the Labour leader - Jeremy Corbyn's fans are celebrating

The thrice-elected Prime Minister is no fan of the new Labour leader. 

Labour heavyweights usually support each other - at least in public. But the former Prime Minister Tony Blair couldn't bring himself to do so when asked on Sky News.

He dodged the question of whether the current Labour leader was the best person to lead the country, instead urging voters not to give Theresa May a "blank cheque". 

If this seems shocking, it's worth remembering that Corbyn refused to say whether he would pick "Trotskyism or Blairism" during the Labour leadership campaign. Corbyn was after all behind the Stop the War Coalition, which opposed Blair's decision to join the invasion of Iraq. 

For some Corbyn supporters, it seems that there couldn't be a greater boon than the thrice-elected PM witholding his endorsement in a critical general election. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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