This week the Reserve Bank (RBA) started to rebuild its credibility and get ahead of the inflation curve by lifting official interest rates by a higher than expected 0.5 per cent to 0.85 per cent… the biggest rate hike in 22 years. It follows well behind similar rate rises by Central Banks in the UK,… Read more »
Let’s go through the facts and disprove some of the mistruths currently being sprouted by the media and politicians about interest rates. Yes, the Reserve Bank surprised everyone by raising official interest rates 0.25 per cent (instead of the expected 0.15 per cent) to 0.35 per cent. Yes, home loan monthly repayments will rise almost… Read more »
How much interest rates will rise is the big question and each of the big banks have a slightly different answer… but they all agree the first rate increase will be June. Westpac’s economic team is now predicting the cash rate hikes will start in June and hit 2 per cent by June the following… Read more »
There’s a handy summary of RBA economic data available to click on – and at the moment it’s a very reassuring thing to do. Every day we seem to be bombarded with economic data. It can feel confusing and overwhelming, but the Reserve Bank Australia has your back. At the end of each month it… Read more »
Rates seem to be staying down for now, so what are your low interest rate investing options? Despite all the media hoopla, the RBA has chosen to keep interest rates as they are for now. Governor Dr Philip Lowe suggests that it’s steady as she goes for the foreseeable future. “The Omicron outbreak has affected… Read more »
Reserve Bank of Australia had a Cup Day surprise in store for the country, announcing it was abandoning its policy of “yield curve control”, meaning it was no longer going to defend any particular interest rate for borrowing over any particular duration. Until then it had a formal target for the three-year bond yield of… Read more »
Rolling lockdowns, slow wage growth and falling employment means interest rates are going to stay low for the foreseeable future. Very slow wages growth will keep interest rates low This week’s Wage Price Index, which measures our pay packets, grew a modest 0.4 per cent in the June quarter. This was below economists’ expectations for… Read more »
Suddenly, Australia’s annual inflation rate is 3.8%, having jumped from 1.1% for the twelve months to March. Should we be worried? The June quarter jump follows a jump in the United States to 5.4% and a jump in New Zealand to 3.3%, sparking a debate between leading pundits such as former US treasury secretary Larry… Read more »
Despite the Reserve Bank of Australia promising to keep official interest rates on hold until 2024, the rates we pay on some loans are already going up… and are expected to keep going up. In practice, we can already see that interest rates are rising. Australians have been enjoying home loan rates under two per… Read more »
This morning Reserve Bank Governor, Phillip Lowe, fronted (digitally) a parliamentary committee and had a lot to say. The highlights for me of what he said are: – The official cash rate of 0.25 per cent will stay at this level for up to 3 years. He says that will help business (and average Australians)… Read more »
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