Impact of inflation on households
News

Behind the headlines: what rising interest rates really mean

- November 17, 2023 4 MIN READ

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 »

RBA inflation down fast
News

RBA wants inflation to slow — fast

- October 20, 2023 3 MIN READ

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 keeps interest rates steady
News

Business as usual at the RBA

- October 6, 2023 3 MIN READ

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 »

Is this the end of interest rate rises?
News

Is this the end of interest rate rises?

- July 7, 2023 3 MIN READ

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 »

RBA advice has been diabolical
News

The RBA’s advice has been diabolically bad

- July 22, 2022 3 MIN READ

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 »

RBA credibility
News

The RBA has started to rebuild its credibility

- June 10, 2022 3 MIN READ

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 »

Enough with the hysterical coverage about interest rates
News

Enough with the hysterical coverage about interest rates

- May 6, 2022 4 MIN READ

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 »