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Tag: Reserve Bank of Australia

End Of Rate Hikes In Sight: RBA

Following its 10th consecutive interest rate hike, the Reserve Bank of Australia has hinted that the end could be near. Speaking at the Australian Financial Review (AFR) Business Summit on Wednesday (8 March), Reserve Bank governor Philip Lowe reflected on this week’s 25-bp rate increase. “At our Board meeting yesterday, we discussed the lags in…
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Some Observations On Home Loan Interest Rates

There is a staggering 800,000 Australian fixed rate home loans coming due during the 2023 year, that’s right 800,000.  That means 800,000 mortgage holders having to make a decision whether to re-fix or allow their loan to convert to variable. Either way it is going to involve a significant increase in the cost of an…
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Inflation, Interest Rates And Recession: Understand The Cycle

There are echoes of the past as rising inflation and interest rates threaten to push Australia and other developed economies into recession, but what is recession, exactly? How can inflation and interest rates interact to trigger a recession? Former Australian prime minister and treasurer Paul Keating infamously stated in 1990, following the release of data…
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Rates to Boost by 50 BPS, Pause by September: Westpac

The bank’s chief economist has pitched its latest Reserve Bank prediction, predicting another half-percentage hike next month, followed immediately by a freeze. If the major bank’s prediction of a fourth consecutive lift over August to 1.85 per cent is correct, this will be the highest that the cash rate has reached in over six years. …
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Inflation Hits Highest Level in 22 Years

Inflation has hit its highest level since the introduction of the GST, with the market to now eagerly watch for how the Reserve Bank manoeuvres the cash rate. New data from the Australian Bureau of Statistics (ABS) has revealed the Consumer Price Index (CPI) rose by 2.1 per cent over the March quarter. During the year to…
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RBA Governor Defends Cash Rate Forecasting

The governor of the Reserve Bank has defended the central bank’s cash rate forecasting, despite increasing expectations from market that a rate rise will come sooner than flagged. Speaking to the House of Representatives standing committee on economics for its hearing on monetary policy on Friday (11 February), the governor of the Reserve Bank of Australia…
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Most Borrowers Ready for a Rate Rise: RBA

The majority of mortgage holders are already maintaining higher loan repayments than required and won’t be shaken by a climbing cash rate, according to the Reserve Bank. Reserve Bank of Australia (RBA) assistant governor (economic) Luci Ellis appeared before the House of Representatives standing committee on tax and revenue on Monday (15 November), for its…
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Inflationary Pressure Pushes Up Interest Rates

Interest rates are rising, but it’s the banks rather than the RBA that have moved first. Tom Uhlich of Boss Money looks at what’s driving the change – and at the implications for the property market. We haven’t seen it in years. The RBA  has not raised interest rates for more than 130 months. But we all knew it…
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RBA’s inflation target has been too high, for too long

There has been much coverage recently of two important issues facing the nation: a review of the Reserve Bank and the housing market.  With regard to the former, The Organisation for Economic Co-operation and Development and International Monetary Fund this month separately backed a review of the RBA, highlighting its failure to achieve its inflation…
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