The Reserve Bank has been constantly saying that as it monitors the economy for any further need for interest rate increases, apart from inflation its focus is on jobs, household spending and the property market. This week we received key data on all these areas. First up jobs. Unemployment up but job creation still strong… Read more »
Comments in the latest RBA Board minutes shows they don’t just want inflation to slow, they want it down at a faster rate. Mark this Wednesday in your calendar. That’s the day the September quarter Consumer Price Index (CPI) will be released at 11.30am. That single figure will determine whether the Reserve Bank lifts interest… Read more »
RBA Board meeting week and it was steady as she goes. A change in RBA Governor from Philip Lowe to Michele Bullock made no difference at all… and I suspect that was the point. There was all sorts of talk in the lead up to the meeting about whether Michele would stamp her own unique… Read more »
You know how ropeable I am about the Reserve Bank’s comments two years ago reassuring Australians to go out and borrow with the comfort of knowing interest rates would not rise until 2024. It was negligent for them to make those comments. Financial markets were warning of a then-imminent breakout in inflation and the need to… Read more »
Yes, it’s that time of the month when the Reserve Bank decides your mortgage repayments. This time they’ve given us a breather. On Tuesday, the RBA kept official interest rates on hold at 4.1 per cent. BUT (yes, I deliberately put this in capitals) don’t think this is the end of the rate hike cycle.… Read more »
The RBA knows that any decision whether to raise or pause interest rates is tricky because you don’t want rate hikes to tip the economy over the edge into recession. This week they took a gamble by lifting rates another 0.25 per cent to 3.85 per cent. The Board has now delivered an incredible 375bp… Read more »
When it comes to money, this week was ruled by Central Banks and interest rates. The Reserve Bank (RBA) on Tuesday and the US Federal Reserve (the Fed) yesterday morning. Big decisions… big reactions. So first our Reserve Bank’s decision to lift official interest rates by another 0.25 per cent to 2.85 per cent. That’s… Read more »
Well, where to start when it comes to interest rates and the Reserve Bank (RBA)? Major speeches this week from the RBA Governor and Deputy Governor, plus the Federal Treasurer orders an independent “review” of the RBA’s performance, governance, mandate and inflation settings. Let’s start with the review. As you know, I’ve been scathing of… Read more »
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 »
