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 if the central bank was "one and done" when it came to rate cuts. "What I would say is that the market is expecting quite a few more interest rate cuts — to the middle of next year, about three more on top of this," she said. Loan size today Current monthly minimum repayment New monthly minimum repayment Change $500,000 $3,320 $3,243 -$77 $750,000 $4,980 $4,865 -$115 $1,000,000 $6,640 $6,486 -$154 Source: Canstar, estimates based on an owner-occupier paying principal and interest with 25 years remaining on their loan on the average variable rate of 6.32% before the February cut "The actual impact of mortgage rate cuts is complicated by factors such as extra mortgage repayments, offset accounts and fixed mortgage rates," Mr Pickering noted.

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History of this topic

Why are the banks waiting to pass on the Reserve Bank's rate cut?
3 weeks, 5 days 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 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 …

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 …

How banks are responding to Reserve Bank decision to cut interest rates
1 month ago

How banks are responding to Reserve Bank decision to cut interest rates

ABC  

Australia's major banks have already announced rate cuts following the Reserve Bank of Australia's decision to cut interest rates for the first time in four years. NAB announced it would cut home loan interest rates by 0.25 per cent, with Personal Bank group executive Ana Marinkovic saying they were "very pleased" with the decision. Variable home loan interest rates will …

Miserly 'as-good-as-it-gets' rate cut puts heat on Albanese to trigger election soon
1 month ago

Miserly 'as-good-as-it-gets' rate cut puts heat on Albanese to trigger election soon

ABC  

From now on, we're all on governor-general watch. Rate cut may be one-off Photo shows Michele Bullock seated at board table Rate cuts are like cockroaches: there's rarely just one. And like the famous 2007 rate hike that dashed John Howard's campaign against Kevin Rudd, this decision may turn out to be a decisive political inflection point. But despite the …

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 …

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 …

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 …

Pressure on Reserve Bank to cut rates
1 month ago

Pressure on Reserve Bank to cut rates

ABC  

Sabra Lane: Good morning, welcome to AM, I'm Sabra Lane, coming to you from Nipaluna, Hobart. The Reserve Bank of Australia wraps up its first meeting of the year this afternoon and it's widely tipped to cut the official interest rate by 0.25 per cent. Cherelle Murphy : I think that the Reserve Bank certainly has a good case to …

RBA interest rate decision closely watched by families in mortgage stress in key marginal electorate
1 month ago

RBA interest rate decision closely watched by families in mortgage stress in key marginal electorate

ABC  

Mia McShane is a working, single mum of two under mortgage stress. "At the supermarket we will play games, picking the cheaper products and make it into a game so they don't realise," Ms McShane said. Working six days a week just to live Danielle Carroll has her "fingers and toes crossed" for an interest rate cut. Ms Goodes said …

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 …

RBI kicks off rate cut cycle—what it means for borrowers and markets
1 month, 2 weeks ago

RBI kicks off rate cut cycle—what it means for borrowers and markets

Live Mint  

The long-awaited policy rate easing by the Reserve Bank of India is finally here. Meanwhile, GDP growth, at 5.4% in the July–September 2024 quarter, is estimated at 6.5% for the full fiscal year—below India’s potential growth rate, warranting monetary support. The RBI is also introducing forward contracts in government securities, enabling long-term investors like insurance funds to better manage interest …

India cuts key interest rate for first time since 2020 amid slowing growth
1 month, 2 weeks ago

India cuts key interest rate for first time since 2020 amid slowing growth

Al Jazeera  

Reserve Bank of India announces first rate cut in nearly five years as world’s most populous nation faces slowdown. India’s central bank has cut its benchmark interest rate for the first time in nearly five years as officials try to reverse slowing economic growth in the world’s most populous country. The RBI last cut the key interest rate in May …

Why a rate cut by RBI will be big news
1 month, 2 weeks ago

Why a rate cut by RBI will be big news

Firstpost  

The RBI MPC is expected to announce that it is slashing the repo rate in the country by 25 basis points. This is expected to be a big deal for several reasons, including due to the time gap from the last rate cut RBI MPC is expected to announce a rate cut for the first time in nearly five years …

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 …

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 …

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 …

Why are interest rates rising when the Fed has been cutting them?
2 months ago

Why are interest rates rising when the Fed has been cutting them?

Associated Press  

NEW YORK — What’s shaking Wall Street seems so backwards. The bond market’s moves might seem strange given that the Federal Reserve has lowered interest rates three times starting in September. But the Fed’s influence is limited when it comes to the interest rates that are currently knocking the stock market around, chiefly the 10-year Treasury yield. And the 10-year …

A February interest rate cut is a real possibility, but there's at least one hurdle to clear
2 months, 1 week 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 …

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 …

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 Federal Reserve lowers interest rates again — but hints at fewer cuts next year
3 months ago

The Federal Reserve lowers interest rates again — but hints at fewer cuts next year

NPR  

The Federal Reserve lowers interest rates again — but hints at fewer cuts next year toggle caption Andrew Caballero-Reynolds/AFP The Federal Reserve lowered interest rates on Wednesday, but policymakers signaled caution about additional rate cuts next year in the face of stubborn inflation. That's less than three months ago when they were projecting a full percentage point in rate reductions …

Meet the new Reserve Bank executive who says it is unfair to blame record immigration for the housing crisis
3 months ago

Meet the new Reserve Bank executive who says it is unfair to blame record immigration for the housing crisis

Daily Mail  

A business leader who lobbied Anthony Albanese to ramp up immigration during a housing crisis has been appointed to a Reserve Bank board. Jennifer Westacott, the former head of the Business Council of Australia is one of four new appointments to the RBA's new governance board with five-year terms starting on March 1 next year. Australia's net overseas migration rate …

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 …

RBI cuts banks’ reserve requirements, a precursor to policy rate easing
3 months, 1 week ago

RBI cuts banks’ reserve requirements, a precursor to policy rate easing

Live Mint  

We have been talking about the Reserve Bank of India easing interest rates for quite some time. In the previous policy review on 9 October, the RBI changed its stance on interest rates from “withdrawal of accommodation" to neutral. Before the 9 October review meeting, the RBI had projected CPI inflation at 4.5% in FY25. At the previous meeting on …

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 …

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 …

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 …

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 …

Why Fed rate cut isn’t the only factor shaping RBI meet
5 months, 2 weeks ago

Why Fed rate cut isn’t the only factor shaping RBI meet

Live Mint  

The US Federal Reserve’s 50-basis-point rate cut was a cue to action for central banks around the world. Read this | RBI may change policy stance, tweak growth forecast: Mint Poll As the Reserve Bank of India’s monetary policy committee convenes this week, it faces a key decision—whether to reduce the repo rate or wait for inflation, particularly food inflation, …

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, 2 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 …

Major bank makes big call on interest rates - here's when home borrowers can expect some relief
5 months, 3 weeks ago

Major bank makes big call on interest rates - here's when home borrowers can expect some relief

Daily Mail  

A major bank has now revised its interest rate forecasts to have the Reserve Bank providing relief in February. National Australia Bank also forecast rates being eased by 25 basis points during every quarter of 2025 until the cash rate fell to 3.1 per cent in early 2026 for the first time since February 2023. A major bank has now …

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 …

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 …

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 …

Greens demand hostile takeover of RBA in exchange for passing board reforms in likely death knell for treasurer's bill
5 months, 3 weeks 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 …

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?
5 months, 3 weeks 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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