INTHEBLACK August 2022 - Magazine - Page 6
FROM THE DESK
// M E R R A N K E L S A L L F C PA
MONETARY
POLICY RETURNS
TO THE FORE
Welcome to the August issue of INTHEBLACK.
There’s never a dull moment when you work in the
accounting profession.
Over the past two years when interest rates
stayed at record lows, the ability of monetary
policy to strongly impact economic outcomes was
diminished. Governments needed to turn to direct
fiscal measures to support and sustain economies
and encourage recovery.
Right now, we face a different set of challenges.
Many countries are grappling with rising inflation,
cost of living and supply chain pressures, and are
being impacted by ongoing geopolitical tensions.
In recent weeks, I’ve begun to see the “R” word –
recession – bandied about.
In this environment, we are seeing monetary
policy come back to the fore. Central banks have
begun raising official cash rates to tamp down
inflationary pressures.
Business, in particular small enterprises, must
also respond to rising inflation. Increasing prices
is one option, but it may not be the best or most
desirable choice. We recently developed a guide on
how to manage your business through a high-cost
environment. I encourage you to take a look and
perhaps share it with clients or colleagues.
Rising interest rates and inflation have also
caused sharp sell-offs across financial markets –
not just in equity markets, but on cryptocurrency
exchanges, too. Many crypto investors have seen
the value of their assets plummet in recent months.
This can be distressing for novice investors – as
crypto investors often are – but there are also
significant tax implications. While investing always
involves risk, crypto assets are particularly volatile.
The recent crypto crash highlights the urgent need
for greater regulatory scrutiny.
6 ITB August 2022
“CPA Australia has
participated in
multiple inquiries
into the regulation
of crypto assets and
their service
providers. Crypto
regulation must be
fit for purpose and
provide relevant
safeguards to
consumers and
investors.”
Since 2020, CPA Australia has participated in
multiple inquiries into the regulation of crypto
assets and their service providers. Crypto
regulation must be fit for purpose and provide
relevant safeguards to consumers and investors.
We discuss our policy positions and recent crypto
events in an episode of With Interest podcast.
It may sound trite, but with challenges come
opportunities for members and the profession.
In times like these, our employers, clients and
communities need our unique skill set and insights
more than ever. CPA Australia’s website is packed
with information and resources to help you
manage through uncertainty and deliver value
to those you support.
Merran Kelsall FCPA, CPA Australia president and chairman