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

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

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

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

NAB raises rates for owner-occupiers and investors by no less than 0.6 percent

NAB says it is raising interest rates by as much as 0.6 percent for some borrowers in more bad news for homeowners. The banking giant said it would raise fixed interest rates for both owner-occupiers and investors. The changes apply to the NAB Keuzepakket and the Custom Home Loan. Homeowners with the NAB Choice one-year … Read more

Is the worst of the inflation crisis behind us? We asked five economists

Some senior economists say inflation in Canada has peaked, with gas and housing prices falling and soon food prices. But they also warn of turbulence for the country’s fragile economy. “It’s like a fever that has peaked, but you won’t feel well for a while,” said Avery Shenfeld, chief economist at CIBC. In its latest … 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

House prices Australia: Energy boom destroys property, pushing up food costs

The Australian economy is caught in the strangest of paradoxes. Our main commodity prices are skyrocketing due to Russian sanctions. Yet our income and wealth are falling at an alarming rate. This runs counter to all recorded similar booms in Australian history, so what went wrong this time around? The story is one of economic … Read more

ANZ says RBA will raise interest rates to 3% before Christmas

Australian borrowers face four more massive rate hikes over the next four months that will push official cash interest rates above 3 percent before Christmas, ANZ warns. The bank drastically revised its forecasts on Tuesday, saying that “strong momentum in the labor market and clear upside risks to inflation” would force the Reserve Bank to … Read more

Australian inflation is expected to hit a 30-year high this month as costs rise

The pain Australians are experiencing will hit hard before the end of the month, when inflation is expected to hit a 30-year high. The pain will continue next month for Australians hit hard by a cost of living crisis with no end in sight. Consumers and businesses are now well aware that bills will rise … Read more