What is inflationary psychology and how does it affect our rising cost of living?

In early September, Reserve Bank Governor Philip Lowe began his annual address to the Anika Foundation, discussing inflation and the country’s future prospects. It was two days after the RBA’s governor confirmed the country’s fifth consecutive hike in the country’s cash interest rates. “After several years of below target inflation, it is now significantly above … Read more

Peter Dutton warns US recession is inevitable

Opposition leader Peter Dutton has stated that the US will enter a recession, and “this prime minister knows what is coming”. The big call comes as treasurer Jim Chalmers prepares to transfer his first budget next month, which he says will be a “bread and butter” effort to curb inflation. The opposition is warning him … Read more

Shocking number of years it takes first-time homebuyers to make a down payment

The grim reality of trying to enter the property market has been exposed with new research showing that it would take a first-time homebuyer as much as 17.5 years to save a 20 percent down payment to buy a house in Sydney. buy with rising interest rates. Across Australia, the shocking survey revealed that with … Read more

More interest rises ahead, but rate of rise will slow, RBA governor says

Reserve Bank governor Philip Lowe says he will continue to raise interest rates but the pace will soon slow down and he is confident the economy can absorb the rises. Most important points: RBA Governor Philip Lowe warns of more rate hikes in the future, but they could be smaller hikes Mr Lowe said he … Read more

Interest rates: decline in household consumption is a sign that RBA will cut spot interest rates in 2023

This aggressive tightening has already increased the average variable mortgage rate in Australia by two-thirds, from 3.45 percent in April just before the first rate hike to 5.70 percent today. This is the highest variable mortgage rate since January 2013 and comes at a time when Australian mortgage holders are more indebted than ever. According … Read more

Reserve bank boss Philip Lowe wants you to stop spending or raise interest rates

Where is the Australian economy heading? This week we learned that the economy grew by 3.6 percent in the 12 months to June. It was strong growth and showed that some households were still happy to spend money when the Reserve Bank started raising interest rates in May. But what happens from here? A slowdown … 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

The Reserve Bank does not have enough information to do accurate interest rates, says former board member

A former board member of Reserve Bank says that the method on which the RBA trusts to activate interest rate increases is poor. Warwick McKibbin was in the reserve Bank Board from 2001-2011 and is a professor of economics at Australian National University. The bank’s main policy focus has been to keep inflation — or … Read more

Reserve Bank wary of cautious consumers amid falling house prices as global economy sours

The Reserve Bank has lowered its forecasts for economic growth as interest rate hikes, falling house prices and an acidifying global economy weigh on Australia’s prospects. The bank has slashed its projections for household consumption, which accounts for about 60 percent of the Australian economy. “Higher consumer prices, rising interest rates and falling house prices … 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