Interest rate updates: RBA lifts cash rate by 0.25 of a percentage point to nine-year high of 2.85pc, NAB first to pass on — as it happened
2 years, 1 month ago

Interest rate updates: RBA lifts cash rate by 0.25 of a percentage point to nine-year high of 2.85pc, NAB first to pass on — as it happened

ABC  

Is there a better way to calculate inflation? Coz it seems like these interest rate hikes aren’t working as well as the RBA would like!!! Secondly, we’re all impatient to see inflation falling but it’s going to take time unfortunately, under current policy settings. And for the last 12 months, Perth’s annual inflation, at 6 per cent, has been the slowest of any major city in Australia. And the WA Government’s most recent budget had cost-of-living measures, like a $400 energy bill credit for households, which has kept inflation much lower over there.

Inflation Price Rate Interest Rate Rba  ways  prices  pass  interest  percentage  rba  rate  wa  price  inflation  property  lifts  updates  point  nab  households  nineyear

History of this topic

UK inflation increase solidifies expectations interest rates will be kept on hold
6 days, 22 hours ago

UK inflation increase solidifies expectations interest rates will be kept on hold

Associated Press  

LONDON — Inflation in the U.K. rose to its highest level in eight months during November, official figures showed Wednesday, a development that has cemented market expectations that the Bank of England will opt against cutting borrowing costs this week. It said stubbornly high inflation in the crucial services sector, which accounts for around 80% of the U.K. economy, and …

Energy costs push UK inflation to 2.3 percent
1 month ago

Energy costs push UK inflation to 2.3 percent

China Daily  

Inflation in the United Kingdom increased to 2.3 percent in October, putting pressure on the Bank of England to wait until next year before making additional interest rate cuts. Figures released by the Office for National Statistics, or ONS, on Wednesday showed that surging household energy costs pushed the consumer price index higher, breaking the pattern of declining inflation rates …

RBA leaves cash rate at 4.35pc, acknowledging it's 'restrictive,' while ASX loses ground — as it happened
1 month, 2 weeks ago

RBA leaves cash rate at 4.35pc, acknowledging it's 'restrictive,' while ASX loses ground — as it happened

ABC  

Here are some highlights from the RBA Board's statement. Underlying inflation remains too high: "Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance. "Headline inflation was 2.8 per cent over the year to the September quarter, down from 3.8 per cent over the year …

The RBA is making confusion about inflation and the cost of living even worse
3 months, 3 weeks ago

The RBA is making confusion about inflation and the cost of living even worse

ABC  

There's a paradox about the way we respond to threats to the cost of living. At the same time, when the cost of living climbs enough to push inflation beyond the Reserve Bank's target, the bank pushes up interest rates in an attempt to drive measured inflation down. Sharp interest rate increases are a problem The response of the Reserve …

Why the rise in inflation might actually be... good news
4 months, 1 week ago

Why the rise in inflation might actually be... good news

The Independent  

Inflation is up… and that’s, erm, good news. A small cut in the Bank rate from the current 5 per cent to, say, 4.75 per cent in September, October or November is slightly more likely now than it seemed yesterday. Prices overall on this definition rose by 3.3 per cent in the year to July 2024 – down from 3.5 …

Further rate rises look increasingly possible, but would they fix inflation?
6 months ago

Further rate rises look increasingly possible, but would they fix inflation?

ABC  

After 13 interest rate hikes that sent home loan repayments soaring, we still have an inflation problem. Two years of rate rises have failed to slow the economy down enough to get inflation back within the RBA's preferred range. According to the RBA governor, aggregate demand continues to outstrip supply even though a large number of households are under extreme …

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits
6 months, 3 weeks ago

RBA Sees Some Households Struggling, Suggesting Rate-Hike Limits

Live Mint  

-- Australia’s inflation is showing persistent strength and weighing heavily on the finances of some households, a senior Reserve Bank official said, highlighting the limits to further interest-rate increases. “The board are absolutely focused on the fact that inflation is clearly still above the target band,” RBA Assistant Governor Sarah Hunter said at a conference in Sydney on Thursday, referring …

Inflation rises slightly in April to 3.6pc but economists say that should ring 'alarm bells' for RBA
6 months, 3 weeks ago

Inflation rises slightly in April to 3.6pc but economists say that should ring 'alarm bells' for RBA

ABC  

In short: The annual rate of inflation ticked up to 3.6 per cent in April, from 3.5 per cent in March. According to the Australian Bureau of Statistics, an underlying measure of inflation — called "trimmed mean" inflation — also picked up again in April, from 4 per cent to 4.1 per cent. "It does not appear that the RBA …

Inflation improves slightly in April, but high cost of housing remains a big obstacle
7 months, 1 week ago

Inflation improves slightly in April, but high cost of housing remains a big obstacle

LA Times  

Cheryl Tugade, left, and Sanaa Sodhi look for apartments in Berkeley. “Because of high interest rates,” he said, “there’s no mobility out of rental situations to buy homes. Fed policymakers track a different inflation measure in which housing isn’t given as much weight in figuring overall inflation. “Maybe if we’re lucky we get one cut this year.” The Fed’s benchmark …

The Reserve Bank's interest rate dilemma: Households are hurting but inflation remains stubbornly high
7 months, 2 weeks ago

The Reserve Bank's interest rate dilemma: Households are hurting but inflation remains stubbornly high

ABC  

Please make it stop. That's what Michele Bullock must say to herself after RBA board meeting days, when journalists conjure a dozen different ways to ask the same question — what's going to happen with interest rates? Over the past year, the inflation rate for discretionary goods and services has been within the RBA's 2-3 per cent target band, at …

Why further interest rate hikes by the Reserve Bank won't fix Australia's inflation problem
7 months, 2 weeks ago

Why further interest rate hikes by the Reserve Bank won't fix Australia's inflation problem

ABC  

If only there was a diagnosed condition called One Size Fits All syndrome. That's helped push one measure of price rises — core inflation — higher on a quarterly measure. Quick as a flash, that's sparked a renewed demand from some sections of the economics commentariat for further rate hikes to smash the evils of inflation once and for all. …

What are the alternatives to using interest rates to tackle inflation? We put your questions to economist Saul Eslake
10 months, 3 weeks ago

What are the alternatives to using interest rates to tackle inflation? We put your questions to economist Saul Eslake

ABC  

Daniel Wigg doesn't drink alcohol anymore. "Although, like interest rates, it would leave older people unscathed," Mr Eslake said. Saul Eslake says lifting income tax was a common way of responding to high inflation in the 1950s and 60s, but "no government would want to do that now". Mr Eslake also said interest rates were kept "too low for too …

Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus
10 months, 4 weeks ago

Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus

Associated Press  

WASHINGTON — The Federal Reserve’s preferred inflation gauge cooled further last month even as the economy kept growing briskly, a trend sure to be welcomed at the White House as President Joe Biden seeks re-election in a race that could pivot on his economic stewardship. Friday’s government report showed that prices rose just 0.2% from November to December, a pace …

How will the latest rise in inflation impact house prices?
11 months, 1 week ago

How will the latest rise in inflation impact house prices?

Daily Mail  

A drop in house prices is 'inevitable' following the latest inflation figures, a top property trade body suggests. The headline CPI rate defied expectations of a dip in December, rising from 3.9 per cent to 4 per cent Property insiders agreed that it is likely to be a 'bumpy ride' ahead for the property market. The typical home was worth …

UK inflation falls by more than anticipated to 2-year low of 3.9% in November
1 year ago

UK inflation falls by more than anticipated to 2-year low of 3.9% in November

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the U.K. as …

Just what IS keeping inflation so high? The everyday items that continue to go up in price revealed - as annual rate of inflation holds steady at 3.7%
1 year, 2 months ago

Just what IS keeping inflation so high? The everyday items that continue to go up in price revealed - as annual rate of inflation holds steady at 3.7%

Daily Mail  

Figures are unlikely to significantly impact Fed interest rates, analysts say Annual inflation held steady in September, with prices increasing 3.7 percent on the year prior, thanks mainly to the cost of food and energy. Annual inflation held steady in September, with prices increasing 3.7 percent on the year prior, thanks mainly to the cost of food and energy. Data …

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise
1 year, 4 months ago

UK inflation falls to 17-month low of 6.8% but unlikely to derail another interest rate rise

Associated Press  

LONDON — The rate of inflation in the U.K. fell sharply in July to a 17-month low largely on the back of lower energy prices, official figures showed Wednesday, a welcome development for hard-pressed households struggling during the cost of living crisis. The Office for National Statistics said the annual rate of inflation, as measured by the consumer price index, …

The RBA says the fight against inflation has entered a new phase. Here's what it means for interest rates
1 year, 4 months ago

The RBA says the fight against inflation has entered a new phase. Here's what it means for interest rates

ABC  

Australia has entered a new frontier in its fight against inflation after the Reserve Bank left interest rates on hold at 4.1 per cent for the second month in a row at its August meeting. It comes back to the fact the RBA's cash rate is only a benchmark — and it's only part of a more complicated puzzle used …

Inflation slows more than expected, chance of an August RBA interest rate rise reduced
1 year, 4 months ago

Inflation slows more than expected, chance of an August RBA interest rate rise reduced

ABC  

Consumer prices rose 0.8 per cent over the three months to June, making a 6 per cent increase over the past year. Key points: Quarterly inflation slowed from 1.4pc in March to 0.8pc in June The annual rate of headline inflation is 6pc, down from 7.8pc in December Economists and financial traders now believe an RBA interest rate rise next …

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low
1 year, 5 months ago

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low

Associated Press  

LONDON — Inflation in the U.K. has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that offered struggling households hope that interest rates won’t rise as much as feared over the coming months. Although Dave Ramsden, deputy governor at the Bank of England, said inflation is still “much too high,” analysts said the …

RBA holds interest rates steady, and homeowners breathe a sigh of relief — but for how long?
1 year, 5 months ago

RBA holds interest rates steady, and homeowners breathe a sigh of relief — but for how long?

ABC  

The RBA has left its cash rate target unchanged at 4.1 per cent — and home owners aren't the only ones breathing a sigh of relief. In the final paragraph of the Reserve Bank governor Philip Lowe's statement on Tuesday he said: "Some further tightening of monetary policy may be required to ensure that inflation returns to target in a …

ASX rallies as inflation falls sharply to 5.6 per cent, easing pressure on RBA to lift interest rates — as it happened
1 year, 5 months ago

ASX rallies as inflation falls sharply to 5.6 per cent, easing pressure on RBA to lift interest rates — as it happened

ABC  

The cost of living is falling but core inflation - which strips out volatile items like petrol - remains stubbornly high. The ABS says consumer inflation rose 5.6 per cent over the year to May, down from the 6.8 per cent increase over the year to April. ABS head of price statistics Michelle Marquardt: "This month’s annual increase of 5.6 …

Chancellor: ‘No alternative’ to interest rate rises to bring down inflation
1 year, 6 months ago

Chancellor: ‘No alternative’ to interest rate rises to bring down inflation

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The UK has “no alternative” …

Why RBA interest rate hikes could end by September – but brace for at least one more
1 year, 9 months ago

Why RBA interest rate hikes could end by September – but brace for at least one more

ABC  

Tuesday's 10th successive Reserve Bank interest rate hike is the culmination of a process that has added $1,080 to the monthly cost of payments on a $600,000 variable mortgage. I've calculated this increase in payments — which amounts to $12,960 per year — by comparing payments on the National Australia Bank's base variable mortgage rate before the Reserve Bank started …

Is there a better way to kill inflation than raising interest rates?
1 year, 10 months ago

Is there a better way to kill inflation than raising interest rates?

ABC  

We have to stop this insanity. As things stand, the main policy lever available to the RBA is interest rates, and with inflation surging that's why it's been lifting rates aggressively. "For a broader effort in slowing economic growth, more heavy lifting would need to come from fiscal policy, though so far it's been missing in action," he said. If …

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it
1 year, 10 months ago

Businesses are fuelling inflation with unnecessary price hikes — and struggling Australians are paying for it

ABC  

Higher prices, that is. The Reserve Bank summed this up in this week's Monetary Policy Decision: "Global factors explain much of this high inflation, but strong domestic demand is adding to the inflationary pressures in a number of areas of the economy." "There's no doubt that corporations have taken advantage of the supply chain problems and the desperation of consumers …

Interest rate updates: Philip Lowe says RBA will 'do what is necessary' to curb inflation as cash rate reaches highest level since September 2012 — as it happened
1 year, 10 months ago

Interest rate updates: Philip Lowe says RBA will 'do what is necessary' to curb inflation as cash rate reaches highest level since September 2012 — as it happened

ABC  

Question for Gareth please If, as all economists state, the reason for rate rises is to curb inflation by inhibiting consumer spending, why doesn’t the government give he RBA the power to adjust the GST rate. This would surely impact consumer spending across the board to share the pain, could be targeted by exempting non discretionary expenditure and would have …

Lowering inflation without a recession might not be feasible: Fed official
2 years, 1 month ago

Lowering inflation without a recession might not be feasible: Fed official

Live Mint  

KANSAS CITY : Inflation is at risk of growing entrenched in the economy due to an overheated job market, and that will make it increasingly difficult for the Federal Reserve to bring inflation down without a recession, a central bank official said in an interview. “I’m looking at a labor market that is so tight, I don’t know how you …

Reserve Bank' admits higher interest rates WON'T bring down inflation
2 years, 1 month ago

Reserve Bank' admits higher interest rates WON'T bring down inflation

Daily Mail  

The Reserve Bank has admitted hiking interest rates aggressively doesn't necessarily bring down inflation quickly. Australia inflation grew by 7.3 per cent in the year to September at levels unseen since 1990 The Reserve Bank's statement on monetary policy released earlier this month forecast annual inflation remaining above its target until 2025, after falling to 3.25 per cent in December …

What's your personal rate of inflation?
2 years, 1 month ago

What's your personal rate of inflation?

ABC  

While inflation has officially reached 7.3 per cent for the year, prices aren’t rising at the same rate across the board. To estimate your personal inflation rate, we took a breakdown of average Australian spending called the Consumer Price Index, and made a few tweaks based on the answers you gave us earlier. Measuring housing costs The official inflation rate …

Australia has a problem with inflation, and that likely means more interest rate hikes to come
2 years, 1 month ago

Australia has a problem with inflation, and that likely means more interest rate hikes to come

ABC  

Australia has a problem with inflation. It's a judgement call The Reserve Bank's inflation fighting job would be a heck of a lot easier if there wasn't such a time lag between cause and effect — that is, raising interest rates and seeing prices come down. But the Reserve Bank's key objective of lowering inflation back to the target range …

Why has the RBA raised interest rates yet again? High inflation — and worse is on the way
2 years, 1 month ago

Why has the RBA raised interest rates yet again? High inflation — and worse is on the way

ABC  

Pushing up interest rates isn't something the Reserve Bank does lightly. The jump in inflation from 6.1 per cent to 7.3 per cent, revealed last Wednesday, made it clear that, even after six consecutive interest rate hikes, inflation was further away from the Bank's target band than it had ever been. The RBA's 2-3 per cent inflation target band was …

Interest rate updates: Reserve Bank lifts cash rate by 0.25 of a percentage point — as it happened
2 years, 2 months ago

Interest rate updates: Reserve Bank lifts cash rate by 0.25 of a percentage point — as it happened

ABC  

Given Inflation is being pushed so much by constrained supply and our slumped dollar, how much of a difference to inflation will further rates make? If we kept rates steady in Australia while the US Fed kept pushing rates higher in the US, the Australian dollar would lose even more value against the US dollar, and that could see a …

More interest rate rises ahead but pace of increase set to slow, RBA governor says
2 years, 3 months ago

More interest rate rises ahead but pace of increase set to slow, RBA governor says

ABC  

Reserve Bank governor Philip Lowe says he will keep lifting interest rates but the pace will soon slow down and he is confident the economy can absorb the rises. Key points: RBA governor Philip Lowe warns of more rate rises ahead, but they may be smaller increases Mr Lowe said it would not surprise him if property prices fell 10 …

Why rising interest rates don't make FDs attractive
2 years, 4 months ago

Why rising interest rates don't make FDs attractive

Live Mint  

With the Reserve Bank of India raising the repo rate by 1.40 percentage points over three policy reviews, interest rates on fixed deposits have inched up in the last few months. View Full Image Mint Better alternatives Taxation of interest income on FDs, National Savings Certificate and RBI savings bonds is the same but the latter two score over FDs …

RBA increases to interest rates mean home buyers who bought at the peak are facing rapidly rising mortgage repayments
2 years, 4 months ago

RBA increases to interest rates mean home buyers who bought at the peak are facing rapidly rising mortgage repayments

ABC  

While some Australians may rejoice at the idea of a drop in house prices, interest rate rises mean home owners face the prospect of their asset dropping in value at the same time their mortgage repayments steadily increase. Key points: House prices in Australia are dropping at their fastest pace since the global financial crisis Those who bought houses at …

Inflation surges by 6.1 per cent - highest since 2001 stirring fears of big August rate rise
2 years, 4 months ago

Inflation surges by 6.1 per cent - highest since 2001 stirring fears of big August rate rise

Daily Mail  

Soaring petrol, housing and food costs have caused Australia's inflation rate to surge by 6.1 per cent for the first time in two decades stirring fears of a super-sized interest rate rise in August. Australia's inflation rate has surged by 6.1 per cent for the first time in two decades stirring fears of a super-sized interest rate rise in August …

Rising interest rates could spark job losses. Is this the best system we have?
2 years, 5 months ago

Rising interest rates could spark job losses. Is this the best system we have?

ABC  

The Reserve Bank will consider lifting interest rates again today. Because after suffering through stagflation in the 1970s, policymakers wanted to prevent stubbornly high inflation ever becoming a problem again, so they abandoned the post-war policy of "full employment". "This radical transformation of employment service delivery is without parallel in OECD countries," noted the Organisation for Economic Co-operation and Development …

Reserve Bank of Australia warning of more interest rate rises as inflation soars
2 years, 7 months ago

Reserve Bank of Australia warning of more interest rate rises as inflation soars

Daily Mail  

Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated. Australian home borrowers are expected to be hit with an even bigger interest rate rise in June as inflation soars at an even faster pace than anticipated On Friday the 13th last week, …

‘Rate increases may not cool price gains driven by war’
2 years, 7 months ago

‘Rate increases may not cool price gains driven by war’

The Hindu  

The Reserve Bank of India’s interest rate increases may not be able to ‘meaningfully’ cool prices while sacrificing growth, as almost three-fifths of the spike in India’s retail inflation since February can be linked to the Ukraine-Russia conflict, SBI’s economic researchers wrote in a report on Monday. “In a situation of incipient demand recovery post COVID, the question will be …

The cost of living is surging, so why will the RBA add to it by raising interest rates?
2 years, 7 months ago

The cost of living is surging, so why will the RBA add to it by raising interest rates?

ABC  

The Reserve Bank hasn't raised its official cash rate target for more than a decade, so many Australians have no adult experience of what a rate rise is like and why the RBA does it. To be exact, the central bank's last rate rise was 25 basis points in November 2010, which took the cash rate target to 4.75 per …

Inflation surge could see super-sized interest rate hike in June, economists warn
2 years, 7 months ago

Inflation surge could see super-sized interest rate hike in June, economists warn

ABC  

The latest official inflation figures are expected to be the highest since the global financial crisis, and at least one leading economist has warned they could trigger an extra large first interest rate hike from the Reserve Bank. Key points: The typical forecast is that consumer prices rose 4.6 per cent over the past year Economists expect that the inflation …

What happens if interest rates don't go up soon? The inflation 'genie' will be out of the bottle
2 years, 9 months ago

What happens if interest rates don't go up soon? The inflation 'genie' will be out of the bottle

ABC  

Australian economic policy is getting rather awkward. The Reserve Bank's cash rate target sits at 0.1 per cent — the lowest on record. Reasons for a higher cash rate target The Reserve Bank governor Philip Lowe recently said it was "plausible" the bank could raise the cash rate target later this year. The main policy tool to control inflation is …

Inflation means we’re in for a tough year ahead – how will increasing interest rates help?
2 years, 9 months ago

Inflation means we’re in for a tough year ahead – how will increasing interest rates help?

The Independent  

This week will see an increase in interest rates in the US and UK. In the case of the US, last week saw consumer inflation reach 7.9 per cent, the highest for 40 years. The Federal Reserve has paved the way for the first increase in interest rates since 2018, with its chair Jerome Powell telling Congress that he is …

Commodity prices are soaring and inflation is rising. Should interest rates start increasing too?
2 years, 9 months ago

Commodity prices are soaring and inflation is rising. Should interest rates start increasing too?

ABC  

There’s more inflation coming. Russia-Ukraine war will lift inflation: RBA Photo shows groceries Reserve Bank governor Philip Lowe says the Russia-Ukraine war could change everything and send prices soaring once again. However, the governor of Australia's Reserve Bank, Philip Lowe, says soaring commodity prices will send a new wave of inflation across the globe. So, to prevent that occurring, some …

Why are soaring property prices left out of inflation figures?
2 years, 10 months ago

Why are soaring property prices left out of inflation figures?

ABC  

We'll be talking about inflation a lot this year. It's only talking about increases in the prices households face for the goods and services they consume from other sectors of the economy — such as the business sector and government sector. That's why soaring property prices, and land values, are excluded from daily measures of inflation. It's why you can …

Why Australians needn't panic about possible interest rate rises as RBA ponders next step
2 years, 10 months ago

Why Australians needn't panic about possible interest rate rises as RBA ponders next step

ABC  

They say talk is cheap, although for the past few years, it hasn't been quite as cheap as cash. Central banks lost control a year ago It's an easy mistake to make; to believe central banks are all-powerful and dictate the direction and size of interest rate movements. A year ago, the 10-year government bond rate – often called the …

Inflation is not 'out of control', but interest rates may have to rise this year
2 years, 10 months ago

Inflation is not 'out of control', but interest rates may have to rise this year

ABC  

Australian consumers saw prices rise by 3.5 per cent last year. Inflation running at 3.5 per cent Most of the price increases facing consumers in Australia last year were driven by pandemic-related economic disruptions. Gareth Aird, a Commonwealth Bank economist, says Australia's labour market will keep tightening this year, meaning even more people will find jobs and the unemployment rate …

Inflation hits 5.1% but Bank of England unlikely to raise rates
3 years ago

Inflation hits 5.1% but Bank of England unlikely to raise rates

Daily Mail  

Inflation was revealed to have hit 5.1 per cent today, but the Bank of England remains unlikely to intervene with an interest rate hike tomorrow, according to analysts. Under pressure: The Bank of England will make a decision on interest rates on Thursday UK CPI hit 5.1% in November, surpassing Bank of England forecasts amid warnings that it could move …

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