RBA forecast scenarios include interest rate hikes
1 week, 3 days ago

RBA forecast scenarios include interest rate hikes

ABC  

Samantha Donovan: To interest rates now, and while most analysts think another hike is highly unlikely, the Reserve Bank has indicated today nothing will be off the table next year when it comes to monetary policy. David Taylor: Betashare's chief economist, David Bassanese, says the Reserve Bank also has to factor in higher levels of government spending and how that's supporting inflation. Obviously, I think today maybe there's an emphasis on the upside risk to interest rates and inflation, but there are also downside risks as well. David Taylor: The Reserve Bank board does not meet in January, so mortgage borrowers will need to wait until February for the next interest rate decision.

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History of this topic

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

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

When will interest rates go down? Here's what you need to know ahead of today's RBA meeting
2 months, 4 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 …

The RBA expects to keep interest rates on hold. It's bad news for mortgage holders and a reality check for the government
4 months, 2 weeks ago

The RBA expects to keep interest rates on hold. It's bad news for mortgage holders and a reality check for the government

ABC  

It was the understatement of the week. When Reserve Bank governor Michelle Bullock popped the bubble of anticipation around an interest rate cut any time soon, she acknowledged "this is not what people want to hear". The idea of a rate cut before the end of the year "doesn't align" with the RBA board's current thinking. "I think it's hard …

The RBA says don't expect interest rate cuts for six months. Here's why it could be sooner
4 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 to hike in August', says investment bank as property market pushes on up
5 months, 3 weeks ago

'RBA to hike in August', says investment bank as property market pushes on up

ABC  

In short: The Australian property market will remain robust this year and next, according to several analysts. Australian property prices are expected to increase by as much as 5 per cent in calendar year 2024, according to the June PropTrack Property Market Outlook Report. "We got capital cities a little stronger at 6 to 7 per cent for the 2024 …

RBA should now 'in theory' hike interest rates in June, but will it?
6 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 …

The Reserve Bank's interest rate dilemma: Households are hurting but inflation remains stubbornly high
7 months, 2 weeks ago

The Reserve Bank's interest rate dilemma: Households are hurting but inflation remains stubbornly high

ABC  

Please make it stop. That's what Michele Bullock must say to herself after RBA board meeting days, when journalists conjure a dozen different ways to ask the same question — what's going to happen with interest rates? Over the past year, the inflation rate for discretionary goods and services has been within the RBA's 2-3 per cent target band, at …

'Too soon to declare victory' as RBA governor Bullock says she can't rule out another rate rise
7 months, 2 weeks ago

'Too soon to declare victory' as RBA governor Bullock says she can't rule out another rate rise

ABC  

In short : Interest rates have been kept steady, at 4.35 per cent. RBA does not want to tip economy into recession, Bullock says On Tuesday, Governor Bullock said when the RBA lifted rates in November, from 4.1 to 4.35 per cent, it was "taking out a little insurance." The RBA's preferred "core" measures of inflation, such as the trimmed …

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

The RBA board will meet eight times this year instead of 11. Here's what that means for your mortgage
10 months, 2 weeks ago

The RBA board will meet eight times this year instead of 11. Here's what that means for your mortgage

ABC  

The Reserve Bank of Australia is switching up how it makes monetary policy decisions, with the changes to take effect at its first meeting of the year on Monday. The shake-up, which was announced last year, will see the RBA board meet and set the cash rate target just eight times a year. Here is the RBA board meeting calendar …

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff
1 year, 2 months ago

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff

ABC  

A "slight uptick" in inflation is unlikely to see the Reserve Bank lift rates at its October meeting, but more than half a million households facing the looming fixed-rate mortgage cliff are being warned to brace for higher repayments. Key points: An increase in August inflation data is unlikely to see the RBA lift rates next week but it could …

RBA holds interest rates steady, and homeowners breathe a sigh of relief — but for how long?
1 year, 5 months ago

RBA holds interest rates steady, and homeowners breathe a sigh of relief — but for how long?

ABC  

The RBA has left its cash rate target unchanged at 4.1 per cent — and home owners aren't the only ones breathing a sigh of relief. In the final paragraph of the Reserve Bank governor Philip Lowe's statement on Tuesday he said: "Some further tightening of monetary policy may be required to ensure that inflation returns to target in a …

Which banks have passed on the June RBA rate rise to mortgage borrowers?
1 year, 6 months ago

Which banks have passed on the June RBA rate rise to mortgage borrowers?

ABC  

Following the Reserve Bank of Australia's decision to bump up the cash rate target for the 12th time, some major banks have already responded to the increase. It announced it would increase its home loan variable interest rates by 0.25 per cent per annum for new and existing customers from June 20. Variable interest rates across ANZ’s Australian home loans …

RBA forecasts harsher short-term pain for longer term gain
1 year, 7 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 …

RBA interest rate rise catches markets, banks and borrowers by surprise
1 year, 7 months ago

RBA interest rate rise catches markets, banks and borrowers by surprise

ABC  

The Reserve Bank of Australia has shocked borrowers and financial markets by resuming interest rate rises after a one-off pause last month. Key points: RBA lifts rates by 0.25 of a percentage point to 3.85 per cent The cash rate is now at its highest level since it was cut to 3.75 per cent in May 2012 Philip Lowe says …

Rising interest rates have put some borrowers in trouble, but the RBA says the banks will be fine
1 year, 8 months ago

Rising interest rates have put some borrowers in trouble, but the RBA says the banks will be fine

ABC  

A significant group of borrowers are at serious risk of default, but Australian banks will be able to comfortably survive any losses, argues the Reserve Bank. Key points: Around 15 per cent of borrowers are forecast to have "negative spare cash flow" About 9 per cent of borrowers are expected to run out of savings buffers by the middle of …

Reserve Bank interest rate pause welcomed by mortgage borrowers as Lifeline prepares to meet with governor Philip Lowe
1 year, 8 months ago

Reserve Bank interest rate pause welcomed by mortgage borrowers as Lifeline prepares to meet with governor Philip Lowe

ABC  

Mortgage holders and support services have welcomed the Reserve Bank's decision to pause months of interest rate rises amid surging living costs, mortgage repayments, and more young people experiencing financial distress and accessing support services for the first time. Key points: The RBA kept the cash rate on hold at 3.6 per cent during its April meeting The central bank …

Federal Reserve hikes interest rates but gives RBA room to pause
1 year, 9 months ago

Federal Reserve hikes interest rates but gives RBA room to pause

ABC  

Never waste a crisis. "We did consider that in the days running up to the meeting," Powell told reporters in a press conference after today's rate rise decision, referring to a period where the banking crisis threatened to spiral out of control. But Powell was keen to maintain a link between the US banking crisis and inflation when explaining why …

Why RBA interest rate hikes could end by September – but brace for at least one more
1 year, 9 months ago

Why RBA interest rate hikes could end by September – but brace for at least one more

ABC  

Tuesday's 10th successive Reserve Bank interest rate hike is the culmination of a process that has added $1,080 to the monthly cost of payments on a $600,000 variable mortgage. I've calculated this increase in payments — which amounts to $12,960 per year — by comparing payments on the National Australia Bank's base variable mortgage rate before the Reserve Bank started …

As crisis calls over financial distress climb, treasurer and finance minister say they know rate rises are hurting
1 year, 9 months ago

As crisis calls over financial distress climb, treasurer and finance minister say they know rate rises are hurting

ABC  

Federal government ministers have acknowledged an increase in distress calls to crisis support hotlines over cost of living, but say the fight to rein in inflation must continue. Key points: The federal government has acknowledged a spike in financial distress calls to crisis hotlines Reserve Bank governor Phillip Lowe says mental health concerns of Australians weighs heavily on him The …

Interest rates are set to keep rising in 2023 but the RBA is playing with fire
1 year, 10 months ago

Interest rates are set to keep rising in 2023 but the RBA is playing with fire

ABC  

Late last November, Reserve Bank governor Philip Lowe was forced into a humiliating public apology. If the official rate hit 3.6 per cent, it found that just over half of all homeowners on variable mortgage rates would see a more than 20 per cent reduction in spare cash flow. That would be chaotic and you can bet your life the …

With another interest rate rise this week, will the RBA put the handbrake on in 2023?
2 years ago

With another interest rate rise this week, will the RBA put the handbrake on in 2023?

ABC  

As we approach year's end, the question on home loan borrowers' minds is will there be more interest rate rises next year? He also indicated more interest rate rises could be on the cards, with the headline rate of inflation still well above the Reserve Bank's 2 to 3 per cent target range. Forecasts for February rate rises are mixed …

A fork in the road for mortgage borrowers: Spend cash buffers to meet higher repayments or cut back on spending?
2 years ago

A fork in the road for mortgage borrowers: Spend cash buffers to meet higher repayments or cut back on spending?

ABC  

Money is being re-directed away from millions of Australians' bank accounts. It's that moment when you discover the majority of the Reserve Bank's interest rate increased have now been applied to your home loan and extracted from your bank account. According to RateCity, if you factor in the entire 2.75 per cent Reserve Bank rate increases, the total extra monthly …

Which banks have passed on the November RBA rate rise to mortgage borrowers? What's in it for savers?
2 years, 1 month ago

Which banks have passed on the November RBA rate rise to mortgage borrowers? What's in it for savers?

ABC  

At the beginning of the month the Reserve Bank of Australia increased the cash rate target by 0.25 of a percentage point, taking it up to 2.85 per cent. ANZ Bank Mortgage rate: Variable home loan interest rates increased by 0.25 per cent per annum on Friday, November 11. Commonwealth Bank Mortgage rate: Variable home loan interest rates increased by …

Bank profits jump but rising interest rates are a double-edged sword
2 years, 1 month ago

Bank profits jump but rising interest rates are a double-edged sword

ABC  

Australia's big banks have raked in nearly $30 billion in 2022, but they are facing a tougher 2023, as some borrowers struggle with higher mortgage repayments as interest rates soar. Key points: Australia's big four banks made $28.5 billion in cash profits in 2022 Official rates have increased seven times since May to 2.85 per cent If unemployment rises, some …

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

Reserve Bank acknowledges its rapid rate hikes could force some people to sell their homes
2 years, 2 months ago

Reserve Bank acknowledges its rapid rate hikes could force some people to sell their homes

ABC  

The Reserve Bank of Australia has acknowledged that its rapid interest rate hikes could see some households with mortgages falling into arrears, forcing some to sell their homes or to enter foreclosure. Key points: The RBA says most households should be able to weather its interest rate hikes However, some households may be forced to sell their homes or enter …

As Reserve Bank lifts interest rates again, more households seek relief from Foodbank
2 years, 2 months ago

As Reserve Bank lifts interest rates again, more households seek relief from Foodbank

ABC  

Demand for food relief from Foodbank has increased by 15 per cent since the Reserve Bank of Australia started lifting interest rates in May. Key points: RBA's smaller-than-expected rate hike has surprised economists However, more rate rises are expected And more households are feeling severely financially strained from rising rates, rising inflation and falling real wages "Around half the people …

Which banks are passing on the latest RBA interest rate rise to mortgage holders? NAB kicked it off, then ANZ and Commonwealth followed suit
2 years, 3 months ago

Which banks are passing on the latest RBA interest rate rise to mortgage holders? NAB kicked it off, then ANZ and Commonwealth followed suit

ABC  

On Tuesday, the Reserve Bank of Australia raised interest rates by 0.5 of a percentage point, taking the cash rate target to 2.35 per cent. The standard variable NAB home loan interest rate will increase by an extra 0.5 per cent per annum from Friday, September 16. Variable interest rates across ANZ's Australian home loans will increase by an extra …

Reserve Bank raises interest rates again in most aggressive increases since 1994
2 years, 3 months ago

Reserve Bank raises interest rates again in most aggressive increases since 1994

ABC  

The Reserve Bank has raised interest rates by 0.5 of a percentage point, taking its cash rate target to 2.35 per cent. Key points: The RBA has raised the cash rate by 0.5 of a percentage point for the fourth straight month The cash rate target of 2.35 per cent is the highest since the beginning of 2015 RBA governor …

RBA increases to interest rates mean home buyers who bought at the peak are facing rapidly rising mortgage repayments
2 years, 4 months ago

RBA increases to interest rates mean home buyers who bought at the peak are facing rapidly rising mortgage repayments

ABC  

While some Australians may rejoice at the idea of a drop in house prices, interest rate rises mean home owners face the prospect of their asset dropping in value at the same time their mortgage repayments steadily increase. Key points: House prices in Australia are dropping at their fastest pace since the global financial crisis Those who bought houses at …

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge
2 years, 5 months ago

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge

ABC  

The Reserve Bank's deputy governor is confident that most mortgage borrowers can cope with rapidly rising interest rates, even as analysts suggest many households could soon face $1,000 a month or more in extra repayments. Key points: Almost a third of borrowers could face a 40 per cent increase in monthly mortgage repayments next year Monthly repayments could increase by …

Interest rates are rising: Is the RBA at fault for allowing Australians to take on too much debt?
2 years, 5 months ago

Interest rates are rising: Is the RBA at fault for allowing Australians to take on too much debt?

ABC  

Can we blame Australians for being a little confused about the Reserve Bank's messaging on interest rates? Towards the end of 2020 and for nearly all of last year, Reserve Bank Governor Philip Lowe said interest rates would not likely rise until 2024. In November and December 2020, Dr Lowe said in the bank's monetary policy decision statement that the …

As fixed mortgages end and rates rise, many risk losing their homes
2 years, 6 months ago

As fixed mortgages end and rates rise, many risk losing their homes

ABC  

Sarah Ibrahim is worried about what will happen when her fixed rate ends in January. As interest rates rise, almost 300,000 people who took large and risky home loans during the pandemic could fall into severe financial hardship or even default. "We're already seeing banks ramping up their action to enforce mortgage debts and repossess homes already against the background …

Reserve Bank economic forecasts show wages will lag price rises for at least another year
2 years, 7 months ago

Reserve Bank economic forecasts show wages will lag price rises for at least another year

ABC  

They say a week is a long time in politics, and it turns out a month is an eternity when it comes to economic forecasting. Whereas, in its previous February quarterly Statement on Monetary Policy, the RBA expected consumer price rises to peak at 3.75 per cent in June, it now expects inflation to hit 5.5 per cent this quarter …

The RBA will raise interest rates — but not to the alarming levels the experts are predicting
2 years, 7 months ago

The RBA will raise interest rates — but not to the alarming levels the experts are predicting

ABC  

A week ago, barely anyone was talking about a pre-election interest rate hike. It is this: The RBA really doesn't want to raise interest rates — at least not to anywhere near the levels many now believe are inevitable. But during the past 30 years, the RBA — in association with the banking regulator, the Australian Prudential Regulatory Authority — …

Inflation surge could see super-sized interest rate hike in June, economists warn
2 years, 7 months ago

Inflation surge could see super-sized interest rate hike in June, economists warn

ABC  

The latest official inflation figures are expected to be the highest since the global financial crisis, and at least one leading economist has warned they could trigger an extra large first interest rate hike from the Reserve Bank. Key points: The typical forecast is that consumer prices rose 4.6 per cent over the past year Economists expect that the inflation …

When will interest rates rise and how high will they go? Westpac the latest bank to tip June lift-off
2 years, 8 months ago

When will interest rates rise and how high will they go? Westpac the latest bank to tip June lift-off

ABC  

It's the key question for several million mortgage borrowers: When will the Reserve Bank start raising interest rates and how high will they go? Home owners bracing for mortgage shock Photo shows A man and a woman smiling with a newborn baby The Reserve Bank leaves the official cash rate on hold near zero, but borrowers are already bracing for …

What happens if interest rates don't go up soon? The inflation 'genie' will be out of the bottle
2 years, 9 months ago

What happens if interest rates don't go up soon? The inflation 'genie' will be out of the bottle

ABC  

Australian economic policy is getting rather awkward. The Reserve Bank's cash rate target sits at 0.1 per cent — the lowest on record. Reasons for a higher cash rate target The Reserve Bank governor Philip Lowe recently said it was "plausible" the bank could raise the cash rate target later this year. The main policy tool to control inflation is …

RBA waves white flag on bond yield target, so interest rates may rise sooner than expected
3 years, 1 month ago

RBA waves white flag on bond yield target, so interest rates may rise sooner than expected

ABC  

Traders have forced the Reserve Bank into submission, with the RBA declining to enter the market to buy April 2024 federal government bonds to defend its interest rate target. Key points: The RBA did not buy April 2024 Australian government bonds on Friday, allowing the yield on them to stay above 0.5 per cent It had been targeting a 0.1 …

Mortgage costs to jump as interest rate rises loom, warns CBA ahead of Reserve Bank meeting
3 years, 5 months ago

Mortgage costs to jump as interest rate rises loom, warns CBA ahead of Reserve Bank meeting

ABC  

Australians could soon be paying more than $26 billion a year in extra mortgage repayments as interest rates begin to "normalise", but the Commonwealth Bank argues there are several reasons why most households will be able to cope just fine. Key points: The RBA's interest rate decision will be announced at 2:30pm AEST, followed by a rare press conference from …

Fixed interest rates may have reached rock bottom, say economists
3 years, 11 months ago

Fixed interest rates may have reached rock bottom, say economists

ABC  

The metaphorical 'shelf' for three-year government bonds is almost empty, according to the National Australia Bank. Key points: The Reserve Bank Of Australia has been buying up government bonds to maintain record-low interest rates According to the National Australia Bank, the RBA will own nearly all April 2024 bonds by the middle of this year Economists say this will make …

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