Live updates on interest rates: Jim Chalmers says Australians are not yet feeling the ‘full impact’ of the Reserve Bank’s latest rate hike

As we heard recently, the RBA expects inflation to continue into the new year. So when will we see the impact of these rate hikes? We presented these to the ABC’s business reporter Gareth Hutchins. Gareth: Interestingly, some economists say there are extremely tentative signs of inflation be able to have reached their peak, or … Read more

A fork in the road for mortgage borrowers: spend money buffers to meet higher repayments or to cut costs?

Money is being funneled from the bank accounts of millions of Australians. It’s been a while. Think back to May when the Reserve Bank raised interest rates. It was the RBA’s first cash rate hike since October 2009. The bank had to take the step. Inflation built up and the forces behind it did not … Read more

The Fed’s path to a “Goldilocks” economy has only gotten more complicated

On December 2, 2022 in New York City, a “help wanted” sign hangs in a window of a Manhattan store. Spencer Plat | Getty Images As for the jobs reports, November was not exactly what the Federal Reserve was looking for. A higher-than-expected payroll and a high wage reading that was twice what Wall Street … Read more

Fed Chair Jerome Powell says smaller rate hikes could come in December

WASHINGTON — Federal Reserve Chairman Jerome Powell confirmed Wednesday that smaller rate hikes are likely ahead, even as he sees progress in the fight against inflation as largely inadequate. Echoing recent statements by other central bank officials and comments at the Fed’s November meeting, Powell said he sees the central bank in a position to … Read more

Treasury yields as investors assess the impact of China’s Covid policies

U.S. Treasury yields fell on Tuesday as investors closely watched Covid developments in China and processed comments from Federal Reserve officials about monetary policy plans. The return on the benchmark 10 year treasury yields last fell about 4 basis points to 3.661% at 6:31 a.m. ET. The 2 years treasury the yield last traded around … Read more

The tighter monetary policy affects mortgage rates, homeowners

Data: Organization for Economic Co-operation and Development; Graphics: Axios Visuals As central banks around the world quickly raise interest rates, policymakers Outside the US will find it has more strength to curb demand. The reason boils down to the unique way Americans finance their homes. Why it matters: Americans tend to take out mortgages with … Read more

Fed’s balance sheet contraction via quantitative tightening is ‘a complete mistake,’ says Mizuho

The Federal Reserve’s attempt to shrink its balance sheet through so-called quantitative tightening, or QT, is “a complete mistake,” said Mizuho’s chief US economist. “There is a non-trivial probability that market liquidity will be negatively impacted well before the $2 trillion target is rolled out, preventing the Fed from meeting its goal,” said Steven Ricchiuto, … Read more

The Fed will likely need to keep rates above 5% through 2024 to curb inflation, says Bullard

The Federal Reserve will likely need to keep its policy rate above 5% for most of 2023 and into 2024 to contain inflation, St. Louis Fed President James Bullard said in an interview with MarketWatch. “I think we should stay there in 2023 and 2024,” Bullard told MarketWatch economics editor Greg Robb. Bullard answered a … Read more

US Treasury Bond Yields as Investors Await Key Economic Data

US Treasury yields fell Monday as unrest grew in China over the country’s Covid policies, as trade awaited a slew of economic data to be released this week – which will provide insight this week into how the US is doing. economy as interest rates and inflation remain high. The benchmark 10 year treasury yield … Read more

RBA Governor Philip Lowe apologizes to Australians struggling with mortgages

Reserve Bank Governor Philip Lowe has apologized to Australians for issuing unclear guidance that led to hundreds of thousands of major mortgages taking out in the expectation that interest rates would remain low until 2024. Most important points: RBA boss Philip Lowe says the bank has not communicated properly with the public He told a … Read more