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

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

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. While Mr Lowe reiterated recent statements strongly hinting that the pace of rate hikes would soon slow from 0.5 percentage points per month, he stressed … 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 doesn’t have enough information to make accurate interest rate calls, says former board member

A former Reserve Bank board member says the method the RBA relies on to trigger rate hikes is flawed. Warwick McKibbin was on the Reserve Bank Board from 2001-2011 and is a professor of economics at the Australian National University. The bank’s main policy focus has been to keep inflation — or the rise in … 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

An unemployment rate of 2.9 percent? Some economists think it is possible. But what happens then?

The Reserve Bank is expected to raise interest rates again this week after rising this month. It will also release new forecasts for inflation, wages, unemployment and economic growth. Analysts say the new forecast is likely to show a slowing economy and rising inflation, but unemployment still falling. How can the unemployment rate go down … Read more