How many more interest rate cuts is the RBA likely to make?
1 month, 1 week ago

How many more interest rate cuts is the RBA likely to make?

ABC  

The Reserve Bank has finally delivered the rate cut many highly indebted mortgage borrowers have been crying out for. The bank's educated guesses of the neutral cash rate range from as low as around 1.5 per cent to nearly 4 per cent depending on which economic model and set of assumptions it uses. It could be that today's cash rate cut and one more take interest rates back to neutral. Relief for borrowers as RBA cuts interest rates Photo shows A person in a long sleeved white collared shirt and black pants walks into the Reserve Bank of Australia as its doors slide open The Reserve Bank board cuts interest rates, decreasing the cash rate by 0.25 of a percentage point to 4.1 per cent. That inflation rate is within the 2-3 per cent target range but stuck just above the mid-point the RBA is aiming for.

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Central banks turn more cautious on rate cuts
1 week, 2 days ago

Central banks turn more cautious on rate cuts

Live Mint  

* Central bank easing meets global caution * BoE keeps rates steady, SNB cuts on Thursday * BOJ remains the G10 outlier By Yadarisa Shabong and Alun John March 20 - Big developed market central banks are turning cautious after a series of interest rate cuts and as uncertainty in global economics and politics grows. Here's a look at where …

Why are the banks waiting to pass on the Reserve Bank's rate cut?
1 month, 1 week ago

Why are the banks waiting to pass on the Reserve Bank's rate cut?

ABC  

Within minutes of the Reserve Bank of Australia announcing it would cut interest rates on Tuesday, the major banks were quick to share they were following suit. "Over the past few years, the big banks have maintained a relatively consistent time frame for passing on RBA cash rate hikes to its variable mortgage customers," she said. "It may well be …

Why the Reserve Bank poured cold water on future interest-rate-cut expectations
1 month, 1 week ago

Why the Reserve Bank poured cold water on future interest-rate-cut expectations

ABC  

It didn't take long for the spectre of Oliver Twist to appear. No sooner had Reserve Bank governor Michele Bullock taken the lectern to confirm the news most Australians wanted to hear, that interest rates would be cut for the first time in more than four years, than the obvious question hung in the air. Relief for borrowers as RBA …

RBA delivers first rate cut since 2020
1 month, 1 week ago

RBA delivers first rate cut since 2020

ABC  

Samantha Donovan: Hello, welcome to PM. So what we've seen is those really sticky items in the inflation baskets, I think insurance premiums, out-of-pocket health care costs, the cost of building a new dwelling or rental prices, those price increases have been such that the Reserve Bank has been worried that if it doesn't keep interest rate policy restrictive, and …

Borrowers on edge ahead of RBA decision
1 month, 1 week ago

Borrowers on edge ahead of RBA decision

ABC  

Andy Park: Hello, welcome to The World Today. If by its very nature, the Reserve Bank cutting interest rates stimulates demand and increases inflation, if underlying inflation still isn't within the Reserve Bank's band of between 2% and 3%, won't an interest rate cut have policy makers put up the white flag on inflation? Jane Bardon: The independent Yolngu MP …

Reserve Bank cuts interest rates to 4.1 per cent after 13 rate hikes — as it happened
1 month, 1 week ago

Reserve Bank cuts interest rates to 4.1 per cent after 13 rate hikes — as it happened

ABC  

Whether you've been hanging out with us all day or tuned in this afternoon, thanks so much for spending some of your Tuesday with us. But if you're hungry for even more interest rates content tonight, you're in luck. On 7.30, host Sarah Ferguson will speak to Treasurer Jim Chalmers and Westpac chief economist Luci Ellis about the RBA's decision …

Reserve Bank cuts interest rates for the first time since November 2020
1 month, 1 week ago

Reserve Bank cuts interest rates for the first time since November 2020

ABC  

The Reserve Bank of Australia has cut interest rates for the first time since November 2020. RBA governor Michele Bullock noted that the rise in interest rates from the "emergency lows" of the pandemic had meant households with home loans were hurting, but argued high inflation caused more pain. At the post-meeting press conference, Ms Bullock said she couldn't confirm …

When will interest rates go down? Banks are preparing for the RBA's cash rate decision
1 month, 1 week ago

When will interest rates go down? Banks are preparing for the RBA's cash rate decision

ABC  

The Reserve Bank of Australia is meeting and banks are forecasting an imminent cash rate cut. The cash rate target is set by the RBA and influences how much commercial banks charge customers for borrowing money — it's currently at 4.35 per cent. All of the big four banks — ANZ, Commonwealth Bank, NAB and Westpac — reckon the RBA …

When does the RBA meet, what's expected to happen to interest rates and how much could you save?
1 month, 3 weeks ago

When does the RBA meet, what's expected to happen to interest rates and how much could you save?

ABC  

There could soon be relief for households with a mortgage, with economists predicting an interest rate cut when the Reserve Bank board meets in February. The board's decision to cut, increase or keep the official cash rate unchanged will be announced shortly after the meeting concludes at 2:30pm AEDT on February 18. Loan size Repayments decrease $600,000 -$92 $750,000 -$115 …

Has the RBA got any choice but to cut interest rates in February?
2 months ago

Has the RBA got any choice but to cut interest rates in February?

ABC  

There's something called a "momentum trade" on financial markets. Two of the big four banks had already tipped a February rate cut ahead of Wednesday's numbers, but Westpac has now joined them and NAB is reviewing its position. If the RBA chooses not to take its foot off the brake by keeping rates steady at 4.35 per cent on February …

Rate cut chances increase after inflation slows in final quarter of 2024
2 months ago

Rate cut chances increase after inflation slows in final quarter of 2024

ABC  

The odds of an interest rate cut next month have increased, with official figures showing the Reserve Bank of Australia's preferred measure of inflation fell to 3.2 per cent over the year to December. The more volatile headline inflation figure came in at 0.2 per cent for the December quarter and 2.4 per cent for the year, down from a …

Will there be a February rate cut? Macro-economics says unemployment is key
2 months ago

Will there be a February rate cut? Macro-economics says unemployment is key

ABC  

At 11:30am on Wednesday this week, the December quarter inflation rate will be announced by the ABS, with the nation's economists, bankers and mortgagees clustered, agog, around their screens. In the past 50 years, the RBA has only ever cut interest rates twice while unemployment declined — during the Asian crisis and US tech boom in the late 1990s, which …

A February interest rate cut is a real possibility, but there's at least one hurdle to clear
2 months, 3 weeks ago

A February interest rate cut is a real possibility, but there's at least one hurdle to clear

ABC  

At 11:31am AEDT on Wednesday, the Australian dollar began falling against the greenback. Inflation drop raises rate cut odds Photo shows A coloured graphic showing a petrol pump, coins, keys and a bag of fresh groceries against a backdrop of receipts A fall in the Reserve Bank's preferred measure of inflation has increased the odds of an interest rate cut …

Good news millions of Aussies with a mortgage have been waiting to hear for years
2 months, 3 weeks ago

Good news millions of Aussies with a mortgage have been waiting to hear for years

Daily Mail  

Economic analysts and bank bosses have forecast an interest rate cut in the next three months, in welcome news for those struggling with mortgage repayments. Westpac chief economist Luci Ellis told Daily Mail Australia on Tuesday that the Reserve Bank could cut rates soon. Economic analysts and bank bosses have revealed an interest rate cut is on the horizon in …

RBA chief's major hint that there could soon be some VERY good news ahead for home-owners
3 months ago

RBA chief's major hint that there could soon be some VERY good news ahead for home-owners

Daily Mail  

The Reserve Bank has given a strong hint borrowers are getting some interest rate cuts in 2025 even though inflation is still too high. The Reserve Bank has given a strong hint interest rate cuts are coming even though inflation is still too high While headline inflation is at a three-year low of 2.8 per cent, the RBA regarded this …

RBA Is More Confident on CPI, But Too Early to Declare Victory
3 months ago

RBA Is More Confident on CPI, But Too Early to Declare Victory

Live Mint  

-- Australia’s central bank is more confident that inflation is moving sustainably toward target but it’s still too soon to conclude the battle is won given a recent pick-up in consumption and a still-tight labor market, minutes of the December meeting showed. The Reserve Bank’s board discussed scenarios in which future policy would be eased to boost economic growth or …

The Fed is about to deliver the last rate cut for a while
Trending News
3 months, 1 week ago

The Fed is about to deliver the last rate cut for a while

CNN  

Washington CNN — The Federal Reserve on Wednesday is expected to cut interest rates for the third time this year, in what could be the last rate cut for months. The Fed’s key interest rate influences borrowing costs across the economy and it’s used to achieve stable prices and maximum employment, two key goals mandated by Congress. With inflation nearly …

Fed lowers interest rates again but pares back plans for more cuts in the future
3 months, 1 week ago

Fed lowers interest rates again but pares back plans for more cuts in the future

LA Times  

Federal Reserve Chairman Jerome Powell has led the central bank’s battle to bring inflation down to 2%, but progress has stalled in recent months. Stocks plunged after the Fed announced its quarter-point rate reduction and updated projections, which halved the number of rate cuts for next year. And one Fed voting member, Beth M. Hammack, president of the Fed Bank …

RBA forecast scenarios include interest rate hikes
3 months, 2 weeks ago

RBA forecast scenarios include interest rate hikes

ABC  

Samantha Donovan: To interest rates now, and while most analysts think another hike is highly unlikely, the Reserve Bank has indicated today nothing will be off the table next year when it comes to monetary policy. David Taylor: Betashare's chief economist, David Bassanese, says the Reserve Bank also has to factor in higher levels of government spending and how that's …

The RBA is preparing for all economic scenarios, including an interest rate hike
3 months, 2 weeks ago

The RBA is preparing for all economic scenarios, including an interest rate hike

ABC  

The Reserve Bank may have dropped the phrase "not ruling anything in or out" in its interest rates commentary, but that does not mean an interest rate hike is completely out of the question. That is because, as Dr Hunter explained, it would mean the RBA's key policy goal of achieving its mid-point annual inflation target of 2.5 per cent …

Reserve Bank governor opens door to February interest rate cut, but will she walk through?
3 months, 2 weeks ago

Reserve Bank governor opens door to February interest rate cut, but will she walk through?

ABC  

There was plenty of pre-Christmas cheer at the Reserve Bank press conference. Why productivity is key to any future rate cut Photo shows People on platform and at the departures board at Sydney's Central train station It's the RBA's latest buzzword for justifying why interest rates need to remain at restrictive levels. "I don't think we're quite tipping in the …

Reserve Bank keeps interest rates on hold in December but leaves door open to a February cut
3 months, 2 weeks ago

Reserve Bank keeps interest rates on hold in December but leaves door open to a February cut

ABC  

The Reserve Bank has left interest rates on hold in December for a ninth-straight meeting, but opened the door to a rate cut as soon as February. This is a change in language from the board's November statement, which said it needed to "remain vigilant to upside risks to inflation" and was "not ruling anything in or out". "While the …

When will interest rates go down? Not for at least a few months, the banks say
3 months, 3 weeks ago

When will interest rates go down? Not for at least a few months, the banks say

ABC  

The Reserve Bank of Australia's board is meeting for the final time this year to make a decision about the cash rate. But when the RBA changes the cash rate target, interest rates for mortgages don't automatically change — the individual banks decide that. That's where something called the "trimmed mean" — sometimes referred to as the underlying inflation rate …

It’s Reasonable to Consider Rate Cut Next Month, Fed’s Kashkari Says
4 months ago

It’s Reasonable to Consider Rate Cut Next Month, Fed’s Kashkari Says

Live Mint  

-- Federal Reserve Bank of Minneapolis President Neel Kashkari said it is still appropriate to consider another interest-rate cut at the central bank’s December meeting. “It’s still a reasonable consideration,” Kashkari said Monday on Bloomberg Television in response to a question about whether policymakers should reduce borrowing costs by a quarter point at their last meeting of the year. “Right …

Federal Reserve’s likely slowdown in rate cuts could disappoint borrowers
4 months, 1 week ago

Federal Reserve’s likely slowdown in rate cuts could disappoint borrowers

Associated Press  

WASHINGTON — Just a few weeks ago, the path ahead for the Federal Reserve looked straightforward: With inflation cooling and the job market slowing, the Fed appeared on track to steadily cut interest rates. “The potential for growth to remain strong — that has to call into question whether they will feel either the need or ability to cut rates …

The interest rate cut is good news for mortgage payers – they need more
4 months, 3 weeks ago

The interest rate cut is good news for mortgage payers – they need more

The Independent  

After a turbulent few weeks, the Bank of England delivered a soothing balm to Britain’s hard-pressed borrowers with a quarter-point cut in interest rates. The Budget also pushed the City’s interest rate swaps market higher – and it is this rather than base rates that governs the price of most popular types of mortgage: two or five year fixes. “Borrowers …

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future
4 months, 3 weeks ago

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future

ABC  

The apparent roar of approval was almost deafening. It's a world that, down the track, promises a return of inflation and permanently higher interest rates as America shifts to a more protectionist global stance that punishes China and, by extension, hurts Australia. Since mid-September, US money markets almost inexplicably have begun forecasting a rise in interest rates. The bond is …

When will we get an interest rate cut? It's largely up to you
5 months ago

When will we get an interest rate cut? It's largely up to you

ABC  

If you needed an excuse to be a bit of a tight-arse this Christmas, quote the latest inflation figures to your disgruntled family and friends. At 2.8 per cent, the annual headline inflation number plunged back within the RBA's 2-3 per cent target range for the first time in three years. At 4.6 per cent over the past year, the …

When will interest rates go down? Here's what you need to know ahead of today's RBA meeting
6 months ago

When will interest rates go down? Here's what you need to know ahead of today's RBA meeting

ABC  

The Reserve Bank of Australia board will announce its September cash rate decision on Tuesday at 2:30pm AEST. But when the RBA changes the cash rate target, interest rates for mortgages don't automatically change — the banks decide that. Ms Mousina says economic data since the RBA's last meeting shows: wages growth slowing job growth remaining solid the unemployment rate …

US Federal Reserve is set to cut rates today; key question is, by how much?
6 months, 1 week ago

US Federal Reserve is set to cut rates today; key question is, by how much?

Hindustan Times  

Having all but tamed inflation, the Federal Reserve is poised to do something Wednesday it hasn’t done in more than four years: Cut its benchmark interest rate, a step that should lead to lower borrowing costs for consumers and businesses just weeks before the presidential election. Exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, …

The US is about to start cutting interest rates, so expect Australia to follow
7 months ago

The US is about to start cutting interest rates, so expect Australia to follow

ABC  

Just three weeks ago, Reserve Bank Governor Michele Bullock declared interest rate cuts unlikely in the next six months. But if there was any doubt about what's going to happen to global interest rates, the US Federal Reserve chair Jerome Powell removed it on Saturday. Rate cuts by the US Fed and other central banks will create a near-irresistible pressure …

How to prepare for the Fed’s forthcoming interest rate cuts
7 months ago

How to prepare for the Fed’s forthcoming interest rate cuts

LA Times  

The Federal Reserve is poised to cut its benchmark interest rate next month from its 23-year high, with consequences for consumers when it comes to debt, savings, auto loans and mortgages. “The time has come” to reduce interest rates, the head of the Federal Reserve, Jerome H. Powell, said Friday in his keynote speech at the Fed’s annual economic conference …

The RBA says don't expect interest rate cuts for six months. Here's why it could be sooner
7 months, 3 weeks ago

The RBA says don't expect interest rate cuts for six months. Here's why it could be sooner

ABC  

Days ago, at the start of last week, there was talk of a Reserve Bank rate hike. So despite what the Reserve Bank governor said on Tuesday, here's why so many people expect interest rates will have to come down — possibly sooner than predicted. It was 3.6 per cent by March, then 3.8 per cent in June, and will …

RBA Governor delivers another blow to Aussies with a mortgage - and why you shouldn't expect rate cuts anytime soon
7 months, 3 weeks ago

RBA Governor delivers another blow to Aussies with a mortgage - and why you shouldn't expect rate cuts anytime soon

Daily Mail  

Australia's most powerful banker has aggressively scotched expectations of rate cuts by Christmas - despite global concerns about an American recession and weak local economic activity. In the media conference afterwards, Governor Michele Bullock stressed a rate cut wasn't happening soon - despite the Reserve Bank statement emphasing the risk of an economic slowdown and weaker gross domestic product 'Given …

Interest rate decision: RBA to make a rate call amid sharemarket bloodbath
7 months, 3 weeks ago

Interest rate decision: RBA to make a rate call amid sharemarket bloodbath

Daily Mail  

Australian home borrowers could be in line for super-sized rate cuts by Christmas after US recession fears wiped more than $150billion from the local share market in just two days. CommSec market analyst Steven Daghlian said a jump in the American jobless rate to 4.3 per cent, the highest level since October 2021, was spooking financial markets and dragging down …

RBA's Michelle Bullock says no cuts expected in next six months after leaving interest rates on hold
7 months, 3 weeks ago

RBA's Michelle Bullock says no cuts expected in next six months after leaving interest rates on hold

ABC  

The Reserve Bank of Australia has kept interest rates on hold at 4.35 per cent. "Financial markets have been volatile of late and the Australian dollar has depreciated," the RBA Board said in a statement. "In doing so, it will continue to pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the …

RBA's 'narrow path' gets narrower with an interest rate rise more likely than a cut
9 months, 1 week ago

RBA's 'narrow path' gets narrower with an interest rate rise more likely than a cut

ABC  

You could see, hear and feel the pressure on Reserve Bank boss Michele Bullock at yesterday's press conference, held after an angst-filled decision to do nothing. Before being peppered with questions, the RBA governor prefaced the discussion by outlining the "complex" economic dilemma the bank's board confronts. "I think the RBA probably should have increased rates a little bit further, …

ANZ Bank delivers a major blow to Aussies with a mortgage in latest forecast: Here's what it means for you
9 months, 1 week ago

ANZ Bank delivers a major blow to Aussies with a mortgage in latest forecast: Here's what it means for you

Daily Mail  

Australian home borrowers are now being told they will have to wait until next year to get any interest rate relief. ANZ broke ranks last week to push back its forecasted start date for rate cuts until February 2025 ANZ last week became the first major bank to forecast a delay in Australian rate cuts, after monthly inflation data showed …

Inflation data this week could help determine Fed's timetable for rate cuts
9 months, 2 weeks ago

Inflation data this week could help determine Fed's timetable for rate cuts

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 After Federal Reserve officials meet …

RBA should now 'in theory' hike interest rates in June, but will it?
10 months ago

RBA should now 'in theory' hike interest rates in June, but will it?

ABC  

Inflation is rising again, and that's a problem for both the government and the Reserve Bank. The annual rate of inflation has ticked up slightly in April to 3.6 per cent, from 3.5 per cent in March, but economists say it's enough to put even more pressure on the Reserve Bank. "At the moment consumers are the ones copping all …

The Reserve Bank's interest rate dilemma: Households are hurting but inflation remains stubbornly high
10 months, 3 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 …

When will Fed cut rates? As US economy flexes its muscles, maybe later or not at all
11 months, 3 weeks ago

When will Fed cut rates? As US economy flexes its muscles, maybe later or not at all

Associated Press  

WASHINGTON — Ever since the Federal Reserve signaled last fall that it was likely done raising interest rates, Wall Street traders, economists, car buyers, would-be homeowners — pretty much everyone — began obsessing over a single question: When will the Fed start cutting rates? Despite the Fed’s aggressive streak of rate hikes in 2022 and 2023, which sent mortgage rates …

Rate cuts will be smaller than you think, says Bank of England official
1 year ago

Rate cuts will be smaller than you think, says Bank of England official

The Telegraph  

Bets on interest rate cuts this summer are too optimistic, according to a senior Bank of England official. Catherine Mann, who voted to hold borrowing costs at 5.25pc last week, said investors had become “complacent” about the prospect of falling interest rates. Traders have priced in three interest rate cuts by the end of the year to take the base …

Interest rate cuts are in play, Bank of England governor Andrew Bailey says
1 year ago

Interest rate cuts are in play, Bank of England governor Andrew Bailey says

The Independent  

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our …

RBA leaves door open to interest rate cuts and rises as unemployment risks rise
1 year ago

RBA leaves door open to interest rate cuts and rises as unemployment risks rise

ABC  

What a difference six weeks makes. Economists and traders expect the US Federal Reserve to lead off a global round of interest rate cuts, but recent economic data suggests the RBA should beat them to it. CBA's head of Australian economics Gareth Aird points out that the RBA board made seven references to "uncertainty" in its one-page post-meeting statement, up …

RBA keeps interest rates on hold at 4.35pc but says 'it will be some time' before inflation within target band
1 year ago

RBA keeps interest rates on hold at 4.35pc but says 'it will be some time' before inflation within target band

ABC  

The Reserve Bank has left interest rates on hold amid signs that growth in the economy has dramatically slowed down following 13 interest rate rises since May 2022. The cash rate remains at 4.35 per cent, and while the central bank gave no clear indication of where it was headed next, saying it was "not ruling anything in or out", …

Fed’s Powell: Rate cuts likely this year, but more evidence is needed that inflation is tamed
1 year ago

Fed’s Powell: Rate cuts likely this year, but more evidence is needed that inflation is tamed

LA Times  

Chair Jerome H. Powell reinforced his belief Wednesday that the Federal Reserve will cut its key interest rate this year but said it first wants to see more evidence that inflation is falling sustainably back to the Fed’s 2% target. Instead, he noted that according to the Fed’s preferred gauge, inflation “has eased notably over the past year” even though …

Economists predict RBA's next rates move will be a cut, but stage 3 tax cuts muddy the timetable
1 year, 1 month ago

Economists predict RBA's next rates move will be a cut, but stage 3 tax cuts muddy the timetable

ABC  

In short: Westpac's CEO has joined senior economists in predicting that the next interest rates move by the Reserve Bank will be a cut to the cash rate. Westpac's CEO has joined senior economists in predicting that the next interest rates move by the Reserve Bank will be a cut to the cash rate. The Reserve Bank board says "a …

Why the RBA may be forced to cut interest rates before the Fed
1 year, 1 month ago

Why the RBA may be forced to cut interest rates before the Fed

ABC  

There's been a nearly universal assumption by both analysts and traders that the US Federal Reserve will effectively kick off the global rate-cutting cycle for developed economy central banks. While the average mortgage rate in Australia has risen by 3.2 percentage points since the RBA started hiking, US home borrowers, on average, have seen their interest rates rise 0.5 of …

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