Has the RBA got any choice but to cut interest rates in February?
1 month, 3 weeks 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 18, governor Michele Bullock would be under immense pressure to justify why. That means the make-up of the current monetary policy board will change between the February meeting and the April 1 meeting, when the treasurer's new appointments take their place at the interest rate decision-making table. "If the current Board held rates steady in February and then the revamped Board cut rates in April, it would look like the government 'stacked' the Board to get the desired result," Ellis notes.

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History of this topic

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

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 …

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

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

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 …

When does the RBA meet, what's expected to happen to interest rates and how much could you save?
1 month, 2 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 …

The ball is in the RBA's court on interest rates — and Anthony Albanese's waiting game goes on
1 month, 3 weeks ago

The ball is in the RBA's court on interest rates — and Anthony Albanese's waiting game goes on

ABC  

It's the start of the election year Anthony Albanese and Jim Chalmers were banking on and the reason why talk of an early poll either late last year or at the very start of this year was always misguided. The prime minister and treasurer were both confident the rate of inflation would keep tracking down over summer, easing Labor's greatest …

Rate cut chances increase after inflation slows in final quarter of 2024
1 month, 3 weeks 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
1 month, 3 weeks 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 …

Market continues to bet on February interest rate cut despite December jobs surge
2 months, 1 week ago

Market continues to bet on February interest rate cut despite December jobs surge

ABC  

Australia's unemployment rate has risen to 4 per cent, but only because more people are looking for work. Loading Although some economists say the combination of a strong jobs market with falling wages growth should cause the Reserve Bank to question its assumption about the level of "full employment" that is compatible with containing inflation in its 2-3 per cent …

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 …

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

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 …

Reserve Bank governor opens door to February interest rate cut, but will she walk through?
3 months, 1 week 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, 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 …

RBA says February rate cut not guaranteed even if inflation figures rosy
4 months ago

RBA says February rate cut not guaranteed even if inflation figures rosy

ABC  

The Reserve Bank could hold off on a February rate cut even if underlying inflation is lower than it expects, a move that would reverberate among mortgaged households and could undermine the federal government's electoral fortunes. But the minutes suggest a rate cut is not assured even if December inflation is low using the Reserve Bank's favoured "underlying" measure, which …

The interest rate cut is good news for mortgage payers – they need more
4 months, 2 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 …

ASX has lowest close since mid-September; household spending weaker than expected — as it happened
4 months, 3 weeks ago

ASX has lowest close since mid-September; household spending weaker than expected — as it happened

ABC  

The Reserve Bank's new, less frequent meeting schedule hasn't done away with the Melbourne Cup day board meeting — we'll get the latest interest rate decision this coming Tuesday, half an hour before the race that stops the nation at Flemington. After this week's inflation figures showed price pressures easing off, but the RBA's preferred measure of underlying inflation — …

When will interest rates go down? Here's what you need to know ahead of today's RBA meeting
5 months, 3 weeks 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 …

Greens demand hostile takeover of RBA in exchange for passing board reforms in likely death knell for treasurer's bill
6 months ago

Greens demand hostile takeover of RBA in exchange for passing board reforms in likely death knell for treasurer's bill

ABC  

The Greens are demanding the government intervene to cut interest rates in exchange for their support on the Reserve Bank bill, an unprecedented condition that impedes Treasurer Jim Chalmers' effort to land his reform. However, in a new demand that will almost certainly result in Labor killing the initiative, Greens economic justice spokesman Nick McKim said Mr Chalmers should wield …

The US is about to start cutting interest rates, so expect Australia to follow
6 months, 3 weeks 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 …

The RBA says don't expect interest rate cuts for six months. Here's why it could be sooner
7 months, 2 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, 2 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, 2 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, 2 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 …

UK interest rates: Bank of England announces interest rate decision after fall in inflation
9 months ago

UK interest rates: Bank of England announces interest rate decision after fall in inflation

The Independent  

✕ Close Related video: Parents financially supporting Gen Z highlights current economic woes Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read …

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

RBA should now 'in theory' hike interest rates in June, but will it?
9 months, 3 weeks 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 …

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", …

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 …

When will the Reserve Bank start cutting interest rates?
1 year, 1 month ago

When will the Reserve Bank start cutting interest rates?

ABC  

In short: The Reserve Bank left interest rates on hold at 4.35 per cent but said it cannot rule out another rate rise, depending on economic data. The Reserve Bank left interest rates on hold at 4.35 per cent but said it cannot rule out another rate rise, depending on economic data. That implies that traders either expect inflation to …

RBA leaves interest rates unchanged at 4.35pc after first meeting of the year, ASX ends lower — as it happened
1 year, 1 month ago

RBA leaves interest rates unchanged at 4.35pc after first meeting of the year, ASX ends lower — as it happened

ABC  

The Reserve Bank has released its latest forecasts for the economy. While lowering its inflation forecasts to reflect the latest December quarter Consumer Price Index, which came in well below its previous expectations, it appears to be wedded to its view that services inflation is sticky and will take a long time to tame. The RBA has taken 0.6 of …

Why did the Reserve Bank leave interest rates on hold at 4.1 per cent? What does it mean for inflation? When will the RBA start cutting rates?
1 year, 5 months ago

Why did the Reserve Bank leave interest rates on hold at 4.1 per cent? What does it mean for inflation? When will the RBA start cutting rates?

ABC  

For the fourth-straight month, the Reserve Bank of Australia left the cash rate on hold at 4.1 per cent at its meeting on Tuesday. In other words, the RBA says the impact of past rate hikes are doing the business at keeping inflation lower and sending it back down to its target range of 2-3 per cent. The RBA has …

RBA forecasts harsher short-term pain for longer term gain
1 year, 10 months ago

RBA forecasts harsher short-term pain for longer term gain

ABC  

The latest Reserve Bank economic outlook brings both bad and good news for Australians. Economic growth over the year to June is expected to be just 1.7 per cent, more than half a percentage point lower than was forecast just three months ago. The RBA had expected workers to enjoy a 4.7 per cent jump in their hourly pay rates …

How does the RBA set interest rates each month? Why was this month's decision a close call?
2 years, 5 months ago

How does the RBA set interest rates each month? Why was this month's decision a close call?

ABC  

The Reserve Bank's deputy governor has offered a detailed insight into the process that goes into the RBA's interest rate decision every month, while the latest board minutes revealed this month's rate decision was "finely balanced". Key points: The RBA deputy governor says there was "an active discussion" at the last board meeting about the size of the rate increase …

Expect the RBA to go easy on interest rate hikes from here — we can't afford rates to rise as much as markets expect
2 years, 9 months ago

Expect the RBA to go easy on interest rate hikes from here — we can't afford rates to rise as much as markets expect

ABC  

By lifting its cash rate from 0.35 per cent to 0.85 per cent, the Reserve Bank has just added about another $120 per month in payments for a $500,000 mortgage. The Reserve Bank increases interest rates by 50 basis points, taking the cash rate target to 0.85 per cent — well ahead of most economists' expectations. The Reserve Bank says …

RBA governor Philip Lowe tells the Press Club the bank will 'take time' before raising interest rates
3 years, 1 month ago

RBA governor Philip Lowe tells the Press Club the bank will 'take time' before raising interest rates

ABC  

The Reserve Bank boss says policymakers are flying into uncharted economic territory, and the RBA will "take the time" to figure out what is going on before raising interest rates. Key points: RBA governor Philip Lowe says the bank will be "patient" before raising interest rates Dr Lowe says the RBA will be waiting to see what happens with supply …

The RBA's rates cut means you could be getting a better deal from your bank
4 years, 4 months ago

The RBA's rates cut means you could be getting a better deal from your bank

ABC  

If there's one thing you should do for your personal finances this week, it's call your bank and ask for a better deal on your mortgage interest rate. Of course, have a look for what deals your current bank is offering too — what they've announced since the RBA's cut and also what rates they're currently offering new customers. Here's …

RBA keeps interest rates on hold at 0.25pc ahead of Federal Budget stimulus
4 years, 5 months ago

RBA keeps interest rates on hold at 0.25pc ahead of Federal Budget stimulus

ABC  

The Reserve Bank has kept its official interest rate at record lows as the Australian economy continues its slow recovery from the COVID-19 recession. Key points: The Australian dollar jumped to 72.08 US cents after the decision Economists are predicting the RBA will cut rates to 0.1pc by the end of 2020 The RBA has kept rates on hold for …

RBA slashes interest rates to 0.25pc in emergency cut amid coronavirus pandemic
5 years ago

RBA slashes interest rates to 0.25pc in emergency cut amid coronavirus pandemic

ABC  

The Reserve Bank has cut interest rates to a record low 0.25 per cent and announced extraordinary measures to help prevent a coronavirus-driven recession. Key points: Australia's economy continues to deteriorate as panicked investors wipe billions of dollars of value off local stock market The RBA will buy Australian government bonds as part of its first-ever quantitative easing program The …

RBA slashes interest rates to new low of 0.5pc to counter coronavirus hit
5 years ago

RBA slashes interest rates to new low of 0.5pc to counter coronavirus hit

ABC  

The Reserve Bank has slashed interest rates to a record low of just 0.5 per cent as it seeks to contain the economic fallout from the escalating coronavirus crisis. Key points: The Reserve Bank has slashed interest rates from 0.75 per cent to a fresh record low of 0.5 per cent The RBA has now cut interest rates four times …

Reserve Bank gives up on pay rises for workers, warns interest rate cuts could backfire
5 years, 4 months ago

Reserve Bank gives up on pay rises for workers, warns interest rate cuts could backfire

ABC  

The Reserve Bank is worried that it is running out of room to slash interest rates further and that wages growth is "no longer expected to pick up". Key points: RBA left interest rates on hold at the record low 0.75 per cent in early November Inflation has fallen below the central bank's target for the 14th straight quarter Workers …

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