AU Cash Rate

Australian entrepreneur and podcast host Mark Bouris has claimed Australia is “definitely in a recession” despite the latest GDP figures showing Australia's economy grew marginally in the March quarter. The Yellow Brick Road founder appeared on Sydney’s 2GB on Tuesday, telling host Ben Fordham despite the overall GDP figure showing growth, the per capita figures indicated Australia was “definitely in a recession” “On a per capita basis, we've been in recession for about 18 months,” Mr Bouris said. “So if you (asked) what is the GDP ...

Judo Bank Chief Economic Advisor Warren Hogan says the recent downturn in the ASX “confirms” the Reserve Bank will keep rates “on hold”. This comes as the global share market collapse over recession fears could shift the Reserve Bank’s rate cut trajectory. The ASX fell by 5.8 per cent in the past two trading sessions – the biggest fall since the early stages of the pandemic in March 2020. “I think this really just confirms that they’re going to remain on hold,” Mr Hogan told Sky News Australia. “The weaker CPI last week was obviously ...

Economists and analysts are pretty much in unison in expecting that the RBA rate will keep steady at the conclusion of its August meeting tomorrow. The main issue for how the Aussie reacts, however, is what is forecast to happen beyond that. Until recently, the expectation was that the RBA would be biased towards hiking the RBA rate in near future. But the latest data has changed that perspective. The question for traders and the market now is whether the central bank agrees with the market, or it keeps to the tone suggesting that ...

No doubt by now you’ve heard of the better-than-expected June Consumer Price Inflation (CPI) report that was released on Wednesday. The Australian stock market surged to a new high, and both existing and aspiring mortgage holders breathed a sigh of relief – as most economists are now calling the RBA will stand pat when it meets to decide on its official cash rate on Tuesday next week. That’s the key takeaway, a steady cash rate rather than a higher cash rate is good for stocks and good for the economy, because in both cases it ...

Global central banks have begun the interest rate-cutting cycle, starting with the Swiss National Bank in March, Sweden’s central bank in May and both the Bank of Canada and the European Central Bank in June. And more recently, other major central banks have changed their tone towards signalling interest rate cuts sometime soon. The Reserve Bank of New Zealand shifted to an easing bias at its July meeting and financial markets are now pricing in close to three rate cuts by the end of the year. Some members of The Bank of England ...

After 13 interest rate hikes that sent home loan repayments soaring, we still have an inflation problem. Actually, make that 17. The Reserve Bank may have lifted rates on 13 separate occasions but a few of those were double-whammy hikes at twice the normal 0.25 percentage point increases. In any other universe, that should have sent the economy into a tailspin, put vast numbers of workers on the dole, crashed the property market and batted price rises back into zombie territory. True, the economy is only barely managing to stay ...