US Federal Reserve Decision Could Cause a Recession: Motley Fool, Stephen Jones

Australians are being told they are “preparing” for further financial pain, including a potential recession, after the US Federal Reserve raised interest rates to the highest levels since the global financial crisis. The central bank raised the country’s cash interest rate by three-quarters of a percentage point to 3.25 percent, and said further rate hikes … Read more

RBA Interest Rate Decision: The Couple’s $500 A Month Rise in Sydney

When Danial Khan and his wife Noor bought their first home 18 months ago, it was a no-brainer. The young couple, who bought in Glenhaven in Sydney’s Hills District, have long dreamed of the freedom and lifestyle promised by homeownership, and secured a 100 percent variable rate from banking giant ANZ. But after five consecutive … Read more

House prices, interest rates: New Zealand is a good indicator of Australia’s spot interest

When the Reserve Bank of New Zealand became the first central bank in the Anglosphere to raise interest rates last October, it effectively became a Kiwi in the coal mine for Australia and other countries in terms of the impact of the tightening monetary policy. To measure how the New Zealand economy is performing with … Read more

CBA boss warns of ‘short sharp contraction’ en route to Australian economy

The boss of Australia’s largest bank has warned that the economy is already contracting and that a “short, sharp contraction” is imminent. Late Wednesday, Commonwealth Bank of Australia CEO Matt Comyn announced the company’s full-year results. Although the CBA made a whopping $9.6 billion in profits last fiscal year, Mr. Comyn warned that tougher times … Read more

ACTU unions call for inflation policy review ahead of Australian jobs summit

Australia’s main economic goal should be for everyone to have the opportunity to find a secure and reasonably paying job, the country’s main trade union organization says. The Australian Council of Trade Unions will urge the federal government to make achieving “full and secure employment” the top priority at the upcoming jobs summit on September … Read more

Economists deeply divided on Reserve Bank’s likely interest rate trajectory

Deep divisions are emerging among some of Australia’s leading banking economists over their outlook for interest rates and the Australian economy. Most important points: The major banks are split on spot rate forecasts, with Westpac and ANZ peaking at 3.35 percent and CBA at 2.6 percent Westpac chief economist warns inflation could spiral out of … Read more

Interest Rates: RBA raises spot interest rate by 50 basis points to 1.85 percent

For the fourth month in a row, the Reserve Bank of Australia (RBA) has raised interest rates as inflation is rampant. At 2:30 p.m. at the RBA’s monthly meeting, it raised Australian interest rates by 50 basis points, or 0.5 percent. The decision brought the cash rate of 1.35 percent to 1.85 percent, largely in … Read more

All four major banks predict ‘more interest rate pain’ as cash interest rates rise

All of Australia’s big four banks are unanimously expecting more sharp interest pain for borrowers after Westpac and NAB updated their spot rate forecasts. Westpac, NAB, ANZ and the Commonwealth Bank of Australia all forecast two increases of 0.50 percentage points in August and September, marking four months in a row of 50 percent increases. … Read more

All four major banks predict ‘more interest rate pain’ as cash interest rates rise

All of Australia’s big four banks are unanimously expecting more sharp interest pain for borrowers after Westpac and NAB updated their spot rate forecasts. Westpac, NAB, ANZ and the Commonwealth Bank of Australia all forecast two increases of 0.50 percentage points in August and September, marking four months in a row of 50 percent increases. … Read more

Interest rates: RBA analysis shows mortgages could rise by 60 percent

Last October, I explored the possibility that the Reserve Bank of Australia (RBA) could be forced to raise interest rates to fuel rising inflation. When I compared them to the old Looney Tunes character Wile E. Coyote, I speculated that the RBA might be forced to furiously chase inflation the same way Wile E. chased … Read more