RBA
Inflation, slowing demand increase risks for business
Business-to-business trade payment defaults have surged as firms struggle with cash flow under challenging conditions. CreditorWatch’s monthly business risk report shows payment defaults lifted 30 per cent in the 12 months to February and credit enquiries soared by...[Read More]
Reserve Bank getting closer to pause, says Philip Lowe
The head of the Reserve Bank says interest rates are now in restrictive territory and the bank has an open mind about pausing interest rates at the next meeting. But he says “further tightening of monetary policy” is still likely to ensure high inflation is only...[Read More]
Reserve Bank eyed jumbo hike to interest rates
Stubbornly high inflation is weighing heavily on the minds of Australia’s central bank board and reducing the chance of a pause on interest rates any time soon. The minutes from the February cash rate decision revealed a pause was not formally discussed despite...[Read More]
RBA boss says it’s unlikely interest rates have peaked
The Reserve Bank governor expects to deliver more interest rate hikes this policy cycle, inflicting further pain on mortgage holders. Philip Lowe said the 3.35 per cent cash rate was unlikely at its peak and further increases would be needed to cool inflation. “I...[Read More]
Record ninth consecutive increase to official cash rate: RBA lifting it 25 basis points to 3.35 per cent
Australian borrowers have been hit with a ninth cash rate rise in a row, with the Reserve Bank lifting it 25 basis points to 3.35 per cent. The RBA board said it expected further increases in interest rates would be needed in the months ahead to return inflation to its...[Read More]
Inflation probably past its peak, says Reserve Bank
The Reserve Bank has stuck with its peak inflation prediction of eight per cent towards the end of last year and expects inflation to simmer down during 2023. Speaking at a parliamentary committee on cost of living pressures, RBA head of economic analysis Marion Kohler...[Read More]
Women gradually cracking the glass ceiling
Women are still woefully under-represented in top jobs but female leaders are becoming more common in Australia’s economic and financial institutions. Within Treasury, the government department responsible for economic policy, the federal budget and market...[Read More]
New building activity slows as rates bite
New home building starts have plummeted by more than 20 per cent in 12 months as labour and material shortages continue to weigh on the construction industry. New building activity fell further in the September quarter after softening moderately in the three months to...[Read More]
ACCC probe to ensure savers get fair deal
The consumer watchdog has been asked to look into interest rates for savers amid concern banks aren’t offering their customers a fair deal. Treasurer Jim Chalmers urged the Australian Competition and Consumer Commission to investigate the matter, noting savers should...[Read More]
Earnings, yield to drive returns in 2023
It’s been a tough year for most equities and investors will likely have to accept lower returns in 2023 – but Australia will still likely outperform its global peers, according to a boutique fund manager. SG Hiscock portfolio manager Hamish Tadgell says shares are...[Read More]
All options on the table in 2023: RBA
The Reserve Bank is keeping its options open going into the new year as the gloomy global outlook, confusing spending behavior and the threat of a wage-price spiral continue to complicate its soft landing for the economy. At its last meeting in December, the central...[Read More]
Economy up 0.6 per cent in third quarter
The Australian economy is expanding at a slower pace with rising interest rates expected to inflict more damage in the months to come. September quarter national accounts showed the economy grew by 0.6 per cent, which followed a higher 0.9 per cent lift in the June...[Read More]
Banks stronger now than in GFC: RBA
The financial sector is stronger than during the global financial crisis, making it less likely markets will again suffer the severe shock that sent the world into an economic meltdown. Senior Reserve Bank of Australia official Jonathan Kearns says reforms introduced...[Read More]
RBA leaves 50bp rate hike on the table
The Reserve Bank is leaving all options on the table to squash inflation, including the return to 50 basis point rate hikes. But RBA governor Philip Lowe said the central bank also hadn’t ruled out pausing rate hikes to let earlier policy tightening take...[Read More]
RBA admits rates forward guidance faults
The central bank is unlikely to attach dates to future interest rate movement forecasts after the backlash sparked by its cash rate predictions during the COVID-19 pandemic. As part of a review of its more prescriptive “forward guidance” measures adopted during the...[Read More]