Why further RBA interest rate hikes are less likely now than even one week ago
1 year, 4 months ago

Why further RBA interest rate hikes are less likely now than even one week ago

ABC  

Since Australia's Reserve Bank hiked interest rates two weeks ago, there have been two important developments — one in the United States and the other in the United Kingdom. In this way, decisions made in the US not to increase interest rates or even to cut them make it easier for Australia's Reserve Bank not to increase rates — or even to cut them. For more than a year now, whenever interest rates have climbed in the US, Australia's Reserve Bank has been under pressure to push up its rates to stop the Australian dollar falling and prices climbing. After last week's news from the US and the UK, Australian financial markets began pricing in a close to zero chance of further interest rate rises — with a fair chance of a rate cut next year.

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History of this topic

Australia, New Zealand currencies edge higher as US economic fears drag dollar
1 week, 6 days ago

Australia, New Zealand currencies edge higher as US economic fears drag dollar

Live Mint  

* Aussie, Kiwi near five-year lows on euro * Wall Street futures sink, lower bond yields bring dollar lower * Little domestic data expected this week SYDNEY, March 10 - The Australian and New Zealand dollars eked out small gains on Monday after U.S. President Donald Trump refused to rule out a recession from his trade policies, triggering a flight …

Has Australia's economy turned the corner? Angus Taylor has a warning
2 weeks ago

Has Australia's economy turned the corner? Angus Taylor has a warning

ABC  

Economists say Australia has turned a corner. Last week, he said labour productivity was still "disastrous" in Australia and the purchasing power of our wages had deteriorated "disastrously" since Labor won the election in 2022. By the time the 2022 election was held, the "real" value of our wages had already deteriorated so much that our wages were buying less …

Why isn't the Albanese government boasting about falling inflation?
3 weeks ago

Why isn't the Albanese government boasting about falling inflation?

ABC  

Independent economist Saul Eslake made a fascinating observation recently. "Nonetheless, I'm genuinely surprised that Treasurer Jim Chalmers and his colleagues haven't been proclaiming often and loudly that they've "pulled off" something that has never been accomplished before in Australia," he said. By "tolerable," he means a level of inflation that's become low enough for the Reserve Bank of Australia to …

Australia, NZ dollars back off resistance, tariff risk looms
3 weeks, 5 days ago

Australia, NZ dollars back off resistance, tariff risk looms

Live Mint  

By Wayne Cole SYDNEY, Feb 25 - The Australian and New Zealand dollars were on the back foot on Tuesday after again failing to clear resistance, and markets were reminded the next round of U.S. tariff jeopardy was just days away. President Donald Trump on Monday indicated proposed levies on Mexico and Canada were still set to start next week, …

Australia, NZ dlrs scale two-month highs, RBA hawkish on easing
1 month ago

Australia, NZ dlrs scale two-month highs, RBA hawkish on easing

Live Mint  

By Wayne Cole SYDNEY, Feb 21 - The Australian and New Zealand dollars hovered near two-month highs on Friday as worries about a global trade war abated a little, while Australia's central bank sounded a hawkish tone on future rate cuts. "Future rate cuts will likely be more a case of benign inflation readings allowing the RBA to remove the …

RBA delivers first rate cut since 2020
1 month 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 …

Australian shares marginally extend losses after RBA cuts rate as expected
1 month ago

Australian shares marginally extend losses after RBA cuts rate as expected

Live Mint  

By Adwitiya Srivastava Feb 18 - Australian shares slightly deepened losses after the local central bank delivered its highly anticipated interest rate cut for the first time in over four years on Tuesday, driven by a sell-off in heavyweight financials. The RBA cut rates by 25 basis points to 4.10%, easing its monetary policy for the first time since November …

Australian central bank cuts benchmark interest rate for the first time since October 2020
1 month ago

Australian central bank cuts benchmark interest rate for the first time since October 2020

Associated Press  

MELBOURNE, Australia — Australia’s central bank on Tuesday reduced its benchmark interest rate for the first time since October 2020 as the nation’s inflation cools. “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,” the board said in a statement. “Some other central banks …

Borrowers on edge ahead of RBA decision
1 month 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 for the first time since November 2020
1 month 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 …

Why the Reserve Bank has little option but to cut interest rates
1 month ago

Why the Reserve Bank has little option but to cut interest rates

ABC  

After more than six months of conjecture and on-again off-again signals, interest rates are about to start a descent. In the December quarter, core inflation came in at just 0.5 per cent which, if you annualise it, comes in at just 2 per cent, smack bang at the bottom of the RBA's target range. Core inflation has dropped rapidly, more …

Yen gains; Aussie, kiwi steady before rate decisions
1 month ago

Yen gains; Aussie, kiwi steady before rate decisions

Live Mint  

By Rae Wee SINGAPORE - The yen rose on Monday in a boost from upbeat Japanese GDP data, while the Australian and New Zealand dollars held broadly steady ahead of policy decisions later in the week. The dollar was on the back foot as traders assessed recent weaker-than-expected U.S. economic data which have reignited bets for more Federal Reserve rate …

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

The RBA hasn't changed the cash rate for more than a year. Here's why
1 month, 1 week ago

The RBA hasn't changed the cash rate for more than a year. Here's why

ABC  

The cash rate target — a figure that influences how high people's mortgage repayments are set — hasn't changed for more than a year. That's why, when inflation started increasing rapidly in Australia, the RBA began lifting interest rates to stop inflation getting worse — and to drag inflation back down into the 2–3 per cent range. The RBA raised …

Big call on interest rates everyone with a mortgage needs to read as Donald Trump tariffs stir inflation fears
1 month, 1 week ago

Big call on interest rates everyone with a mortgage needs to read as Donald Trump tariffs stir inflation fears

Daily Mail  

Donald Trump's 25 per cent tariffs on Australian goods could end up delaying interest rate cuts here, experts fear. Donald Trump 's 45 per cent tariffs on Australian goods could end up delaying interest rate cuts, experts fear This would occur as weaker American demand for imports boosted the US dollar. Alarmingly, KPMG sees headline inflation climbing back to 3.3 …

Inflation has fallen in Australia and NZ, but which is faring better?
1 month, 2 weeks ago

Inflation has fallen in Australia and NZ, but which is faring better?

ABC  

New Zealand's economy is in recession. But inflation has fallen in both countries, and Australia's Reserve Bank is expected to start cutting interest rates soon. For example, New Zealand's labour force hasn't grown in the past 12 months, but you wouldn't know that by looking at its unemployment rate. Therefore, you could argue that New Zealand's unemployment rate is obscuring …

The fallout of Trump's tariffs hits financial markets as ASX dives. Here's what it means for Australia
1 month, 2 weeks ago

The fallout of Trump's tariffs hits financial markets as ASX dives. Here's what it means for Australia

ABC  

Tariffs imposed by US President Donald Trump may not be a surprise, but they have certainly caused a shock on financial markets. "But central banks still cutting rates with the RBA joining in, prospects for stronger growth later in the year supporting profits, and Trump's policies ultimately supporting US shares, should still mean okay investment returns," Dr Oliver said. "The …

Why is the Australian dollar falling and what could it mean for you?
2 months, 1 week ago

Why is the Australian dollar falling and what could it mean for you?

ABC  

The Australian dollar is around its lowest level since 2020 against the US currency, continuing its move towards 61 US cents with a sharp fall over the weekend. "While the strong US dollar has left no prisoners, the Aussie softness has been exacerbated by tariff angst, fears over economic growth in China and the repricing in domestic interest rate expectations," …

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

Interest rates, exporters and Reserve Bank intervention: There's a lot at stake as the Australian dollar weakens
2 months, 2 weeks ago

Interest rates, exporters and Reserve Bank intervention: There's a lot at stake as the Australian dollar weakens

ABC  

Is the Reserve Bank close to stepping into the currency market to support the Australian dollar and, if so, what does this mean for millions of Australians? Reserve Bank can intervene to support the dollar The Reserve Bank last intervened in the foreign exchange market in 2007-08 during the global financial crisis, when it bought Australian dollars. "This was in …

Australian dollar now at risk of plummeting to pandemic-era lows, analysts say
2 months, 3 weeks ago

Australian dollar now at risk of plummeting to pandemic-era lows, analysts say

ABC  

The Australian dollar has fallen sharply, hitting a multi-year low of 61.88 US cents — a level not seen since October, 2022. "The problem with the Australian dollar appears to be that there was a real wobble in the Chinese currency into New Year's Eve," InTouch Capital Markets senior FX analyst Sean Callow said. The US dollar has performed strongly …

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

Dollar firms as US rates outlook dominates
2 months, 3 weeks ago

Dollar firms as US rates outlook dominates

Live Mint  

By Rae Wee SINGORE, - The dollar was on the front foot on Tuesday as the prospect of higher-for-longer U.S. interest rates remained top of investors' minds, leaving other currencies struggling near milestone lows. The Bank of Japan last week kept rates on hold and stayed vague on when it could next raise rates, an outcome which was in stark …

The Australian dollar could be heading to a 20-year low, on risks of China, Trump and slow growth
2 months, 3 weeks ago

The Australian dollar could be heading to a 20-year low, on risks of China, Trump and slow growth

ABC  

You wouldn't be an economics forecaster for quids. A weak Chinese economy, American threats to impose punishing trade tariffs, a poor medium-to-longer-term outlook for our key exports and a sluggish economy are likely to keep the Australian dollar under pressure through 2025, threatening to send it into the 50 US cents. The upside of heading down The Australian dollar is …

Share market rises after a rally on Wall Street, Australian dollar remains at two-year low — as it happened
2 months, 3 weeks ago

Share market rises after a rally on Wall Street, Australian dollar remains at two-year low — as it happened

ABC  

OK, so a lot of this discussion is couched in coded messages. They noted that the data received since the previous meeting had not been sufficient to shift the central forecast for inflation or the labour market materially at this stage." "Relative to this central path, members judged that the risk that inflation returns to target more slowly than forecast …

NZ recession and Federal Reserve rate cut sink Aussie dollar but show the RBA dodged a bullet
3 months ago

NZ recession and Federal Reserve rate cut sink Aussie dollar but show the RBA dodged a bullet

ABC  

If you're looking for a last-minute overseas summer getaway, New Zealand is looking increasingly attractive. On the monetary policy front, the Reserve Bank of New Zealand started lifting its cash rate from COVID-19 lows of 0.25 per cent in October 2021 — a full seven months before Australia's Reserve Bank. Why a Fed rate cut sent the US dollar soaring …

The RBA is preparing for all economic scenarios, including an interest rate hike
3 months, 1 week 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 …

Australia's unemployment rate falls to 3.9pc in November, its lowest level since March
3 months, 1 week ago

Australia's unemployment rate falls to 3.9pc in November, its lowest level since March

ABC  

Australia's unemployment rate fell to 3.9 per cent in November, down from 4.1 per cent in October. "The only downside to Australia's remarkably strong job market is that any hope of a near-term interest rate cut is over," said Callam Pickering, APAC economist at global job site Indeed. "Today's blockbuster November employment report seemingly pushes back — yet again — …

Major blow for Aussies just before Christmas as Reserve Bank makes interest rate decision
3 months, 1 week ago

Major blow for Aussies just before Christmas as Reserve Bank makes interest rate decision

Daily Mail  

Australian home borrowers have been dealt a severe blow just before Christmas with the Reserve Bank denying them a rate cut. Governor Michele Bullock gave a strong hint rate cuts could be months away with inflation still too high, ahead of an election next year. Australian home borrowers have been dealt a severe blow just before Christmas with the Reserve …

Reserve Bank keeps interest rates on hold in December but leaves door open to a February cut
3 months, 1 week 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 …

The brutal reality of life under Anthony Albanese as economy grows at weakest pace in more than three decades
3 months, 2 weeks ago

The brutal reality of life under Anthony Albanese as economy grows at weakest pace in more than three decades

Daily Mail  

Australia's economy is barely growing despite record-high levels of immigration and government spending, as the country enters its longest-ever per capita recession. Australia's economy is still barely growing despite record-high immigration levels The Australian Bureau of Statistics data showed GDP per capita shrank by 1.5 per cent over the year, continuing a per capita recession that began in early 2023 …

Why the bout between the Reserve Bank and the federal government is about to heat up
3 months, 2 weeks ago

Why the bout between the Reserve Bank and the federal government is about to heat up

ABC  

There's an old adage that oppositions don't win elections, governments lose them. RBA Governor Michele Bullock says Australia's strategy of reducing inflation without stoking too much unemployment is part of the reason why it looks different to peer economies right now. RBA unlikely to react to October inflation data Photo shows Household money pic Australia's inflation rate remained steady in …

The politics of the RBA's independence means a struggle over Australia's economic outlook is being fought in the shadows
3 months, 3 weeks ago

The politics of the RBA's independence means a struggle over Australia's economic outlook is being fought in the shadows

ABC  

When the prime minister fronted the media just after 8am on Friday, the sense of elation was palpable. We now live in a world where the sainted independence of the RBA is such that the treasurer can't even be seen to be giving it a few "helpful suggestions" about interest rates. He says for the RBA's wage forecast to be …

RBA unlikely to lower interest rates in 2024 despite inflation at its lowest level since July 2021
3 months, 3 weeks ago

RBA unlikely to lower interest rates in 2024 despite inflation at its lowest level since July 2021

ABC  

Australia's inflation rate remained steady in October, with analysts tipping this price data won't change the Reserve Bank's mind to hold interest rates at their highest level in about a decade until at least early 2025. The inflation rate held at 2.1 per cent annually, with the rising price of food, alcohol, cigarettes and recreational activities keeping it up, while …

Australian share market rises as inflation rate stays steady, Bitcoin pulls back from recent highs — as it happened
3 months, 3 weeks ago

Australian share market rises as inflation rate stays steady, Bitcoin pulls back from recent highs — as it happened

ABC  

The RBA states on their website that their target for inflation is between 2 and 3 percent. - Allan Thanks for writing in Allan — here's a bit more on what you're referring to for anyone else interested: You're right, the Reserve Bank does target headline inflation between 2-3 per cent. Here's what it contains at the moment, according to …

Why Australia is lagging the pack on rate cuts
4 months, 1 week ago

Why Australia is lagging the pack on rate cuts

ABC  

At last, some good news. Despite core inflation still sitting well above target, there's a better than even chance the official cash rate will be cut within weeks. But when it came to the all-important core inflation measure, America's came in at 3.3 per cent, again just a couple of points below us at 3.5 per cent. Immediately after the …

Big hint Anthony Albanese is responsible for you missing out on a rate cut - with Australia's most powerful banker blaming government spending for inflation
4 months, 2 weeks ago

Big hint Anthony Albanese is responsible for you missing out on a rate cut - with Australia's most powerful banker blaming government spending for inflation

Daily Mail  

Australia's most powerful banker has given a strong hint that excessive government spending is to blame for high inflation, ruling out rate cuts until 2025. Australia's most powerful banker has given a strong hint excessive government spending is to blame for high inflation - and therefore no rate cuts While headline inflation has fallen to a three-and-a-half year low of …

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future
4 months, 2 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 …

Interest rates might fall in February … but don't bet the house on it
4 months, 2 weeks ago

Interest rates might fall in February … but don't bet the house on it

ABC  

It's the hope that kills you. Rate cuts may not come until autumn, if they come at all Now even a February rate cut is looking unlikely, according to the money markets, which are pricing just 20 per cent chance of a cut, despite all four big banks and many other local economists forecasting it. Markets are pricing in a …

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

Review finds 'no evidence' gunshots were deliberately edited into commando footage — as it happened
Trending News
4 months, 2 weeks ago

Review finds 'no evidence' gunshots were deliberately edited into commando footage — as it happened

ABC  

Treasurer Jim Chalmers answers a questions on the RBA interest rates. Member for Macquarie, Susan Templeman, asks: "What does the decision taken today by the Reserve Bank mean for Australians and what progress is being made in the fight against inflation and how does this compare to other approaches?" "Secondly, it reflects the progress that we are making together in …

Reserve Bank keeps interest rates at 4.35pc for eighth-straight meeting despite lower inflation
4 months, 2 weeks ago

Reserve Bank keeps interest rates at 4.35pc for eighth-straight meeting despite lower inflation

ABC  

The Reserve Bank of Australia has kept interest rates on hold at 4.35 per cent for its eighth-straight meeting, despite inflation falling to its lowest level in almost four years. In a statement, the RBA said while inflation has "fallen substantially" since it peaked in 2022, underlying inflation remained too high at 3.5 per cent in the September quarter. The …

Who is to blame for Australia's inflation problem and stubbornly high interest rates?
4 months, 3 weeks ago

Who is to blame for Australia's inflation problem and stubbornly high interest rates?

ABC  

What, or more precisely who, is to blame for the inflation episode that has up-ended our lives for the past three years? In all the noise this week about electricity prices, and the federal government assistance that has temporarily kept energy bills in check, we've overlooked one of the persistent driving forces behind our elevated inflation. Interestingly, both relate to …

The cheapest home loan interest rate in Australia as banks slash rates
5 months, 2 weeks ago

The cheapest home loan interest rate in Australia as banks slash rates

Daily Mail  

Australian borrowers tempted by lower fixed rate mortgages should not jump in too soon, amid predictions of even better deals on offer in 2025. Macquarie Bank on Thursday slashed its two and three-year fixed rates by 20 basis points to 5.39 per cent - now Australia's lowest mortgage rate outside of a green loan. But their lowest fixed rates are …

The great New Zealand rate hike experiment and where it all went wrong
5 months, 3 weeks ago

The great New Zealand rate hike experiment and where it all went wrong

ABC  

You have to hand it to the Kiwis. In NZ, interest rates have started to fall Photo shows Skyscapers make up a very business end of town skyline As Australian mortgage holders wait for relief, the Reserve Bank of New Zealand cuts rates and green shoots emerge in the housing market. RBA keeps interest rates at 4.35pc Photo shows Reserve …

No RBA rate cut yet, but Governor Bullock is about to find the pressure overwhelming
5 months, 3 weeks ago

No RBA rate cut yet, but Governor Bullock is about to find the pressure overwhelming

ABC  

Who'd want to be Reserve Bank Governor Michele Bullock? Reserve Bank keeps interest rates on hold at 4.35pc Photo shows Reserve Bank of Australia generic The RBA has kept interest rates on hold at 4.35 per cent, saying inflation is still too high to start cutting rates. The Reserve Bank board has decided to keep the cash rate steady at …

Reserve Bank keeps interest rates on hold at 4.35pc, ignoring political pressure for cut
5 months, 3 weeks ago

Reserve Bank keeps interest rates on hold at 4.35pc, ignoring political pressure for cut

ABC  

The Reserve Bank has left interest rates on hold at 4.35 per cent. Earlier this month, Treasurer Jim Chalmers said the RBA's rate hikes were "smashing the economy", and former Labor treasurer Wayne Swan accused the RBA of "putting economic dogma over rational decision-making" by refusing to cut rates at this point in the cycle. "With the labour market still …

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?
6 months ago

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?

ABC  

Perhaps no question matters more to Australians worn down by three years of relentless cost pressures: when will the Reserve Bank cut interest rates? But not too much – which is why when inflation shoots high, the Reserve Bank raises interest rates to suppress demand by making it more expensive to borrow and spend. But the Reserve Bank prefers a …

How the US Federal Reserve rate cut could impact the race for the White House between Harris and Trump
6 months ago

How the US Federal Reserve rate cut could impact the race for the White House between Harris and Trump

ABC  

The US Federal Reserve has cut rates in a dramatic move that will have a major impact on the American economy and could help determine who occupies the White House for the next four years. By cutting rates by half a per cent, the Fed has signalled it thinks the battle against the high inflation that has plagued the US …

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