Tag: interest rates
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RBA keeps rates on hold after alarming inflation jump
Hopes of a Melbourne Cup-day rate cut have been dashed as the Reserve Bank of Australia elected to keep the cash rate on hold at 3.6 per cent on Tuesday. The decision came as little surprise to economists after a surprise surge in inflation figures last week. Underlying or trimmed mean inflation, which is the…
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All bets are off: Odds not looking good for a Cup-day rate cut?
Sorry folks. The experts have placed their bets and it looks like Melbourne Cup Day won’t be delivering a win for mortgage holders this year. Economists are warning the Reserve Bank is likely to hold interest rates steady next week as inflation proves stickier than hoped. According to Finder’s latest RBA Cash Rate Survey, 86 per…
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Fresh blow for Aussie home owners as inflation hits high
Underlying inflation has risen to three per cent over the year to September, damaging mortgage holders’ hopes of an interest rate cut. Housing, recreation and culture, alcohol and tobacco, and communication had the biggest price increases over the most recent quarter, according to the Australian Bureau of Statistics. Underlying or trimmed-mean inflation is the RBA’s…
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No rate relief for borrowers as RBA stays on hold
The Reserve Bank of Australia has held interest rates steady as widely expected, with attention turning to when, or if, the central bank will cut again. Borrowers will have to wait until at least November for more mortgage relief, but hotter-than-expected inflation and an enduringly robust labour market have raised the prospect the RBA might…
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Mortgage rates are coming down again, but is it too late?
At its last meeting, the Reserve Bank board shocked just about everyone – except itself – and left interest rates on hold. When the board next meets on August 11-12, it will belatedly cut the cash rate, providing welcome relief for mortgage-holders, businesses and consumers. But has it left it too late? Shoppers are closing…
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Misdiagnosis of this economic ailment will lead to more hardship
Tuesday’s decision tells a tale of misdiagnosis of the causes of the bout of inflation that started in late-2022. All developed countries experienced a cost-of-living surge in the early 2020s, peaking in Australia at 7.8 per cent in the final months of 2022. Its main cause was shortages of goods and services created by Covid-19…
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Inflation hope as RBA decision leaves many disappointed
Australian borrowers are rightly disappointed that they won’t get an interest rate cut this month, but the treasurer says there is a silver lining in the way inflation is tracking. Financial markets and economists were overwhelmingly tipping the central bank to deliver a 25 basis point cut on Tuesday. But its board instead decided to…
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Rates kept on hold in surprise Reserve Bank decision
The Reserve Bank has kept the cash rate on hold in a move that will disappoint borrowers hoping for further mortgage relief. The surprise decision went against expectations of most traders and economists, who were leaning towards a 25 basis point cut to reflect under-control inflation and sluggish retail spending. The decision was not unanimous,…
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More relief could be on the way sooner for homeowners
Two of Australia’s big four banks are predicting a cut in interest rates when the Reserve Bank next meets, following better-than-expected inflation numbers. Despite predictions of inflation remaining steady, headline inflation for May fell to 2.1 per cent from 2.4 per cent the previous month. The fall, announced on Wednesday, was driven largely by a…
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Interest rates are gaslighting an entire generation
The past few years have brought noise and headlines dissecting the nail-biting roller-coaster ride that is interest rate changes. There is nothing quite like it to spark fiery debates and divide between generations battling it out in the contest of who had it harder. But what if we looked beyond the spats of buying that…