18 Nov RBA’S MEA CULPA; INCLUSIVITY PAYS OFF
Welcome to this week’s round up of insights and commentary, brought to you by Team Cannings.
RBA’S MEA CULPA
When it comes to managing expectations, it seems Reserve Bank governor Philip Lowe has learned a valuable lesson: language matters.
His mea culpa this week over his oft-repeated message in 2020 and 2021 that the RBA wasn’t expected to start lifting its cash rate for at least three years sent a strong signal that he won’t be offering that kind of guidance again – particularly given there’s been seven rate hikes this year.
The RBA says it’s reviewed its policy on communicating its forward guidance given the “considerable reputational damage” it’s suffered, and in future it will be “more qualitative in nature” and “focus on the short term”.
It’s perhaps little consolation though for all those mortgage holders who took out home loans in the past two years feeling pretty confident interest rates wouldn’t rise until around 2024. Winning back their trust and confidence may take a bit of time and effort on the part of the RBA.
INCLUSIVITY PAYS OFF
The Diversity Council of Australia (DCA) announced the country’s 30 most inclusive employers this week, with the Australian Maritime Safety Authority, Cisco Systems, Mars Australia & New Zealand, Property Council of Australia and our parent company, WPP, making the list.
According to the DCA, employees who work for these organisations are eight times more likely to be highly productive and innovative, and four times less likely to experience discrimination.
For companies to be classified as an “inclusive employer”, they must meet at least five of the six National Index Benchmark measures: awareness, engagement, inclusive organisational climate, inclusive leadership, inclusive team, and exclusion.
CHRISTMAS PARTYING
Christmas may only be 37 days away (seriously!), but the festive season is well underway in the corporate world.
Unlike the past few festive seasons, which were quite subdued thanks to COVID, many companies are going big for Christmas 2022.
According to the Sydney Morning Herald, some big corporates are having sports and circus-themed parties while others are opting for team building exercises like axe throwing (??), quizzes and wine tasting.
Feel free to share these updates with colleagues or friends. They can sign up here to receive our daily newsletter.