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

RBA, Real Estate: Within $3.8 Trillion Prediction Error in the Real Estate Market

Inflation is soaring, interest rates are rising and rumors of a recession in Australia and around the world are peaking. The real estate market has softened after the highs of 2021 and is expected to decline further in the coming months. Fear and uncertainty is great. But with the massive forecasting errors made by banks … Read more

Which banks are passing on the latest RBA rate hike to mortgage holders? NAB kicked it off, then ANZ and Commonwealth followed

On Tuesday, the Reserve Bank of Australia (RBA) raised interest rates by 0.5 percentage points, bringing the target for the spot interest rate to 2.35 percent. It was not until Friday afternoon that the National Australia Bank (NAB) and ANZ announced that they would pass on the increase in full to mortgage holders. On Friday … Read more

Interest Updates: RBA Raises Cash Rate for Fifth Consecutive Month — As It Happened

Business Reporter Gareth Hutchens is on deck to unpack this afternoon’s announcement and answer some of your questions. “Interests are rising every month, there are no gaps to measure whether they are working. They have to do nothing for three months and then look at the data, or else they will go too far and … Read more

The Reserve Bank plans to raise cash rates again just as Australia’s economic tectonic plates are shifting

Change is in the air and for many it is deeply disturbing. The financial markets, for example, are betting on a higher-than-even chance that the Reserve Bank will raise its cash interest rate again by 0.5 percentage points on Tuesday as it – and other central banks – grapple with the worst inflation breakout in … Read more

Mortgage borrowers and tenants told to brace themselves for major financial blow in December

The full budgetary impact of the second most aggressive rate hike cycle in Reserve Bank history will be felt by millions of households for months to come. Most important points: Economists warn mortgage customers have only felt the impact of the first RBA rate hike That’s because there is a delay between when an increase … Read more

Unemployment falls back to new low, but cause of decline is not good news

The official unemployment rate fell to 3.4 percent in July from 3.5 percent a month earlier. Most important points: Unemployment drops from 3.5 percent in June to 3.4 percent in July An estimated 40,900 jobs were lost in July, the first drop in employment since October 2021 The decline in the unemployment rate was driven … Read more

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 served on the board of the Reserve Bank 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 … Read more

The rising crisis could have reached its peak as vacancy rates rise in some areas and rents fall

Since the pandemic first began to have a significant impact on the Australian economy nearly two and a half years ago, events have developed very differently from what you might expect at first glance. Rather than result in falling asset prices and rising unemployment, the country has instead seen everything from Pokémon cards to used … Read more

Reserve Bank to test digital currencies in ‘limited-scale pilot scheme’

The Reserve Bank of Australia will test its proprietary digital currency as part of a research project to evaluate the future of Central Bank Digital Currencies (CBDC) in Australia. Most important points: The RBA will launch a central bank digital currency (CBDC) pilot project as part of a research project The CBDC becomes a real … Read more