If the RBA’s right, interest rates may not fall for another year. Here’s why – and what it means for next week’s budget | Metals Mine

  • If the RBA’s right, interest rates may not fall for another year. Here’s why – and what it means for next week’s budget

    From theconversation.com

    The Reserve Bank is now assuming Australians will see no interest rate cuts this year – and quite possibly none before the next federal election, due next May. That’s a big change compared to just three months ago. Back in February, the Reserve Bank assumed three rate cuts before the middle of the next year. Its newly-updated assumptions have interest rates remaining high for the rest of this year, then declining only slowly, with a cut by May 2025 about as unlikely as it is likely. chart The assumptions are based on financial market pricing, which the bank says is “the best predictor of the future cash rate ... (full story)

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liberty458
May 8, 2024 5:38am
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To me what that says is that the Aud and other Currencies will stay as Funding currencies and nothing will change for some time to come...and Japan is quite Happy with that...I think that was always the Plan...
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liberty458
May 9, 2024 1:16am
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Ok I will try....what i mean is that all the other Currencies that have a high interest rate compared to the Yen..the Yen will be used as Funding Currency so lets say you Buy the AUD/YEN...AUD has an interest rate is 4.35% and you sell the Yen... interest rate -.10+ so you will get a swab interst to your account....but if you would have sold/shorted the Aud/Yen you would have to pay swab interest...like NZd has an interest rate of 5.5% same as the USD ...GBP has an interest rate at 5.25 so the higher the interest rate of a Country is the more interest you accumulate in your account if you sell the Yen....so that is what i mean with the funding currencies the higher the rate of a countries interest rate is and if you buy that countries currency and sell the Yen the higher swab you will get...and off course the lower the Yen goes it is good for Japans Exporters ....but the People of japan Suffer as all imports are High because of the very Low Yen....so it is a double edge sword...and Japan is an export Country so it has to import most of the things its citizen need like food and Gas/Diesel and so on...so they need High wages to counteract the Low yen ...But will leave it at that...I think you get what i mean...
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Marken01
May 8, 2024 6:24am
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Quoting liberty458
To me what that says is that the Aud and other Currencies will stay as Funding currencies and nothing will change for some time to come...and Japan is quite Happy with that...I think that was always the Plan...
can you explain what do you want to say
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