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 »
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 »
