Reserve Bank leaves interest rates on hold despite bushfires and coronavirus
4 years, 11 months ago

Reserve Bank leaves interest rates on hold despite bushfires and coronavirus

ABC  

The Reserve Bank has left interest rates on hold at its first meeting of the year, despite the economic fallout from Australia's bushfires and China's coronavirus outbreak. Key points: The Reserve Bank has kept the cash rate unchanged at 0.75pc since its last cut in October RBA governor Philip Lowe says the bank will be focusing on jobs figures to decide whether further rate cuts are needed, but is open to them Analysts say Mr Lowe made surprisingly little mention of coronavirus and the bushfires in his post-meeting statement The RBA's cash rate remains at a record low 0.75 per cent, where it has been since the last 25-basis-point cut in October. Bank expectations of Mr Lowe's "extended period of low interest rates" are seeing many fixed rates well below 3 per cent as well, including five-year fixed mortgages for as low as 2.84 per cent from the subsidiaries of one of Australia's big four banks. "Already the Government's understandable decision to close the border to travellers from China means the impact of the coronavirus is likely to considerably exceed earlier estimates, such as our 0.2 per cent impact."

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History of this topic

The RBA is preparing for all economic scenarios, including an interest rate hike
3 weeks, 6 days 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 keeps interest rates on hold in December but leaves door open to a February cut
4 weeks, 2 days 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 …

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

Why the Reserve Bank will be forced to cut rates before year's end
3 months, 4 weeks ago

Why the Reserve Bank will be forced to cut rates before year's end

ABC  

Until just a few weeks ago, it seemed as though the developed world had pulled off what once was thought to be the impossible. And yet, despite this mounting evidence of a critical economic slump, there remains a rump of high-profile economists openly criticising the Reserve Bank of Australia's reluctance to push interest rates above 5 per cent. Parliament House …

With rates on hold again, the government and the public hold their breath. What comes next?
5 months ago

With rates on hold again, the government and the public hold their breath. What comes next?

ABC  

The Reserve Bank's decision to leave interest rates unchanged is the latest in a series of fizzers. RBA governor Michele Bullock did take the unusual step of telling us we should not expect a rate cut in the next six months, taking us out to at least February next year. RBA Board keeps interest rates at 4.35 per cent Photo …

RBA keeps interest rates on hold at 4.35pc but says 'it will be some time' before inflation within target band
9 months, 3 weeks 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", …

Reserve Bank leaves interest rates on hold in an early Christmas present for borrowers - but here's why Aussies with mortgages should be worried
1 year, 1 month ago

Reserve Bank leaves interest rates on hold in an early Christmas present for borrowers - but here's why Aussies with mortgages should be worried

Daily Mail  

Australian borrowers have been warned to expect another rate hike even though the Reserve Bank has this month left interest rates on hold. The cash rate is already at a 12-year high of 4.35 per cent after the RBA last month raised rates for the 13th time in 18 months. KPMG chief economist Brendan Rynne said the Reserve Bank statement …

Reserve Bank leaves interest rates on hold in a major win for millions of homeowners in one of Philip Lowe's final acts as governor
1 year, 4 months ago

Reserve Bank leaves interest rates on hold in a major win for millions of homeowners in one of Philip Lowe's final acts as governor

Daily Mail  

The Reserve Bank has left interest rates on hold at an 11-year high of 4.1 per cent for the third straight month. Since peaking at 8.4 per cent late last year, the monthly measure of annual inflation has moderated, falling back to 4.9 per cent in July, the lowest level since February 2022, from 5.4 per cent in June. But …

The Reserve Bank has left interest rates on hold as Governor Philip Lowe's moment of truth looms
1 year, 9 months ago

The Reserve Bank has left interest rates on hold as Governor Philip Lowe's moment of truth looms

ABC  

Australia's Reserve Bank has hit pause on interest rates after ten successive hikes, but for many Australians, the pain it has inflicted is about to begin. The bank says more than one million households will come off ultra-low fixed-rate mortgages this year and the next, some of those rates fixed for as low as 1.95 per cent. Reserve Bank leaves …

Reserve Bank raises interest rates, 'expects that further increases will be needed'
1 year, 11 months ago

Reserve Bank raises interest rates, 'expects that further increases will be needed'

ABC  

The Reserve Bank has raised interest rates for the ninth meeting in a row, taking the cash rate target to its highest level since September 2012. Key points: The RBA's cash rate target is now at 3.35 per cent That is the highest level of the cash rate since September 2012 The RBA governor indicates that further rate rises are …

Reserve Bank of Australia leaves interest rates on hold for April 2021, borrowers expect early rise
3 years, 9 months ago

Reserve Bank of Australia leaves interest rates on hold for April 2021, borrowers expect early rise

Daily Mail  

Record-low interest rates are a ticking time bomb for one million home borrowers amid fears mortgage costs will go up well before 2024. The Reserve Bank of Australia on Tuesday left the cash rate on hold at a record low of 0.1 per cent but governor Philip Lowe has acknowledged rapidly rising house prices were a concern. Pictured is a …

RBI expected to hold rates this week as Covid cases rise
3 years, 9 months ago

RBI expected to hold rates this week as Covid cases rise

India Today  

The Reserve Bank of India is widely expected to keep key interest steady on Wednesday amid a surge in COVID-19 cases in the country, but may revise its inflation projections higher. "We expect the MPC to come up with another dovish pause on Wednesday, especially with Covid-19 cases rising," said Indranil Sengupta, an economist at Bank of America Securities. However, …

Why the Reserve Bank and the federal government don't see eye to eye on Australia's coronavirus recovery
3 years, 9 months ago

Why the Reserve Bank and the federal government don't see eye to eye on Australia's coronavirus recovery

ABC  

These are unusual times. As the federal government is adamant that stimulus needs to be wound back, to allow the private sector to take over in the recovery, the Reserve Bank is doubling down, arguing that it will be years before Australia can wean itself off the emergency interest rates that have sunk to zero. Responsible lending not responsible Ever …

Fed keeps interest rates on hold, warns of further pandemic impact on the economy
4 years, 2 months ago

Fed keeps interest rates on hold, warns of further pandemic impact on the economy

CNN  

New York CNN Business — The Federal Reserve left interest rates unchanged at ultra-low levels Thursday, and warned that the Covid-19 pandemic will continue weighing on the economy in the short term. “The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over …

Safety is the key as interest rates continue to fall
4 years, 6 months ago

Safety is the key as interest rates continue to fall

Live Mint  

Yields enjoyed by fixed income securities’ investors are headed lower. Vanilla economic theory suggests that lower interest rates spur growth as producers get funds at lower cost, which aids the production of cheaper goods. Falling interest rates simply means that the segment of the population dependent on passive, fixed income—often senior citizens, will fall short of their required returns. At …

Inside the coronavirus 'break glass in case of emergency' moment for the Australian economy
4 years, 8 months ago

Inside the coronavirus 'break glass in case of emergency' moment for the Australian economy

ABC  

Reserve Bank governors aren't typically prone to dramatic flair. "I didn't think in my term of Governor, I'd be buying $40 billion of government bonds, which we've done in the past few weeks and lending over $100 billion to the banking system," he said. By early March, Mr Lowe told the Government "it was hard to spend too much money …

The coronavirus' economic fallout has its own momentum as RBA makes extraordinary intervention
4 years, 9 months ago

The coronavirus' economic fallout has its own momentum as RBA makes extraordinary intervention

ABC  

The Reserve Bank is trying to stop the financial system melting down. 'Extraordinary and challenging times' Yesterday's extraordinary intervention from the Reserve Bank saw the official interest rate lowered to 0.25 per cent, to a level never seen in Australia's history. The RBA will keep the interest rate at 0.25 per cent for years, until it is confident that the …

RBA slashes interest rates to 0.25pc in emergency cut amid coronavirus pandemic
4 years, 9 months 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 …

Has the coronavirus pandemic revealed the Reserve Bank has lost control of the economy?
4 years, 9 months ago

Has the coronavirus pandemic revealed the Reserve Bank has lost control of the economy?

ABC  

It has passed largely unnoticed, what with the panic induced by an escalating health crisis and stock markets ravaged by relentless selling. Central banks, and particularly the Reserve Bank of Australia, now find themselves staring into the abyss, on the verge of losing control of the only real weapon they have at their disposal — interest rates. Ever since the …

Coronavirus to leave Australian economy in the doldrums for some time, says Reserve Bank
4 years, 9 months ago

Coronavirus to leave Australian economy in the doldrums for some time, says Reserve Bank

ABC  

A swift economic recovery from the coronavirus outbreak is "very unlikely" and the pandemic will have a "significant effect" on Australia's national finances, according to the Reserve Bank. Key points: Minutes show the RBA does not know when the economy will recover But it believes Australia will benefit from a Chinese growth rebound later this year The bank is prepared …

Coronavirus fallout could take Australian economy decade to recover from, KPMG says
4 years, 9 months ago

Coronavirus fallout could take Australian economy decade to recover from, KPMG says

ABC  

Australia's economy could take almost a decade to recover from the coronavirus fallout even after being cushioned by the Federal Government's $17.6 billion stimulus, according to a report out this morning. Key points: KPMG said in the best case scenario, Australia's economic growth would decline by 0.9 per cent in 2020 This, even with the Federal Government's stimulus measures, amounts …

Fed Makes A Dramtic Move During Coronavirus Fallout
4 years, 9 months ago

Fed Makes A Dramtic Move During Coronavirus Fallout

NPR  

Fed Makes A Dramtic Move During Coronavirus Fallout The Federal Reserve cut interest rates to near-zero and announced a set of programs to help blunt the economic fallout from the coronavirus pandemic spreading throughout the world. HORSLEY: In this case, though, Steve, the Fed's action, which was designed to be reassuring, may have simply underscored, for a lot of investors, …

Coronavirus: From US to India, how nations are tackling economic fallout
4 years, 9 months ago

Coronavirus: From US to India, how nations are tackling economic fallout

India Today  

Policymakers and government leaders have taken a range of approaches to deal with the economic fallout from the coronavirus. Japan's central bank may also take steps to ensure companies hit by the coronavirus outbreak do not face a financial squeeze before the end of the current fiscal year in March, according to sources familiar with the central bank's thinking. BRITAIN …

UK interest rates cut to tackle coronavirus threat to economy
4 years, 9 months ago

UK interest rates cut to tackle coronavirus threat to economy

CNN  

London CNN Business — The Bank of England has slashed interest rates to a record low and launched other emergency measures as part of a dramatic and coordinated UK response to limit the economic fallout from the coronavirus. The central bank said in a statement Wednesday that while the magnitude of the shock from the coronavirus remains “highly uncertain,” economic …

Who will save the world from a coronavirus recession?
4 years, 10 months ago

Who will save the world from a coronavirus recession?

Al Jazeera  

Why a shock US central bank rate cut may not be enough to save the global economy from the coronavirus outbreak. Growth could halve this year to 1.5 percent, the OECD warned in its worst-case scenario for the outbreak, a growth rate generally considered to indicate a recession. Rajiv Biswaz, executive director and Asia-Pacific Chief Economist at IHS Markit, adds …

Coronavirus roils markets: this is why it matters to everyone
4 years, 10 months ago

Coronavirus roils markets: this is why it matters to everyone

Al Jazeera  

Even if you are not invested in stocks and bonds, how these markets behave shows what is at stake in the global economy. The 10-year US treasury yield – which on Friday tumbled below 0.7 percent for the first time ever – is a benchmark for setting rates on financial products such as home mortgages and student loans. The “R” …

RBA interest rate cuts won't save the economy from coronavirus, but there are policies that may
4 years, 10 months ago

RBA interest rate cuts won't save the economy from coronavirus, but there are policies that may

ABC  

An interest rate cut might be a bonus for homeowners with mortgages and give share investors a temporary sugar hit, but it's not going to do much to save the economy from coronavirus. Rate cuts can't stop coronavirus disruptions If a rate cut won't do much to help with the demand shock, it'll do virtually nothing to ameliorate the supply …

ASX falls after Dow Jones plunges on Federal Reserve's coronavirus interest rate cut
4 years, 10 months ago

ASX falls after Dow Jones plunges on Federal Reserve's coronavirus interest rate cut

ABC  

Australian shares have fallen sharply after a volatile session on Wall Street overnight, sparked by a surprise rate cut from the US central bank. Key points: The Federal Reserve has cut rates by 50 basis points two weeks ahead of its next scheduled meeting The Dow Jones index fell 2.9 per cent to 25,917 points, having traded higher earlier in …

COVID-19 | Federal Reserve cuts key interest rate due to virus risk
4 years, 10 months ago

COVID-19 | Federal Reserve cuts key interest rate due to virus risk

The Hindu  

The U.S Federal Reserve implemented on March 3 an emergency rate cut, responding to the growing economic risk caused by the coronavirus epidemic and giving President Donald Trump the stimulus he has called for. After the announcement, Federal Reserve chairman Jerome Powell said the emergency interest rate cut will provide a “meaningful boost to the economy” in the face of …

Surprise! Fed slashes interest rates to counter coronavirus
4 years, 10 months ago

Surprise! Fed slashes interest rates to counter coronavirus

Al Jazeera  

US central bank cuts its benchmark rate by half a percentage point to buoy economy against coronavirus fallout. The Federal Reserve cut its benchmark interest rate by half a percentage point on Tuesday in a surprise move aimed at shoring up the economy against negative fallout from the coronavirus outbreak. During a press conference following the rate cut, Fed Chairman …

The Reserve Bank has cut rates again, but now 'it's up to fiscal policy' to save the economy from coronavirus
4 years, 10 months ago

The Reserve Bank has cut rates again, but now 'it's up to fiscal policy' to save the economy from coronavirus

ABC  

It was a strange thing to watch. We just saw the Reserve Bank cut the official cash rate to another historic low, an eye-watering 0.5 per cent. Now, with global economic headwinds turning into a dark cumulonimbus, the Reserve Bank has just pushed Australia's overnight cash rate towards the famed zero-lower bound, that point at which traditional monetary policy deals …

RBA slashes interest rates to new low of 0.5pc to counter coronavirus hit
4 years, 10 months 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 governor Philip Lowe sees coronavirus and bushfires as short-term economic speedbumps
4 years, 11 months ago

Reserve Bank governor Philip Lowe sees coronavirus and bushfires as short-term economic speedbumps

ABC  

The Reserve Bank governor has painted a bright picture of the Australian economy in 2020, although one that will be clouded by the uncertain costs of bushfires and coronavirus early this year. Key points: The Reserve Bank is expecting above-average growth in Australia this year and next as the global economy improves RBA governor Philip Lowe says a truce in …

Authorities mull steps to shore up economy, prevent market sell-off
4 years, 11 months ago

Authorities mull steps to shore up economy, prevent market sell-off

China Daily  

A teller counts cash at a bank branch in Nantong, Jiangsu province, on Jan 30, 2020. Chinese authorities are expected to use monetary tools and strengthen government spending to slow the weakening of economic activity due to the novel coronavirus outbreak, and to ensure ample liquidity to prevent a sharp sell-off when financial markets reopen on Monday. More detailed measures …

Interest rates: Fed keeps rates steady, watching coronavirus
4 years, 11 months ago

Interest rates: Fed keeps rates steady, watching coronavirus

CNN  

Washington CNN Business — The Federal Reserve on Wednesday held interest rates steady despite renewed pressure from President Donald Trump to make deeper cuts. Citing solid job gains and household spending that continues to rise moderately, Fed officials deemed plans to hold rates as “appropriate” following a two-day meeting in Washington. On Tuesday, he urged the Fed to cut rates …

Interest rates stay on hold at 1pc as Reserve Bank holds fire despite stalling economy
5 years, 4 months ago

Interest rates stay on hold at 1pc as Reserve Bank holds fire despite stalling economy

ABC  

The Reserve Bank has kept its official interest rate on hold, despite indications the economy slowed sharply over the June quarter. Key points: The RBA kept the cash rate at a historic low of 1pc, despite easing guidance on GDP growth in the near term The dollar remained steady, as the hold was widely anticipated by the market RBA governor …

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