Australian interest rates

Of course, MOAR is coming.

TD Securities has published an interesting report showing how soaring shelter costs have been one of the biggest drivers of US inflation this year: Rising shelter costs have been one of the biggest drivers of surging inflation this year.

Westpac with the note.

It has been one of the strangest episodes in recent Australian interest rate history.

TS Lombard has written a note arguing that the traditional inverse relationship between unemployment and prices – known as the Phillips Curve – has broken down across the world’s economies because authorities have lost control of inflation expectations.

Card-carrying RBA sock-puppet, Terry McCrann: Yes, the “3 Rs” might have fallen out of favour in our schools, but is it too much to ask that the esteemed members of our economentariat might have at least some crude understanding of simple ‘rithmetic, to say nothing of the basics of economics 101?

“Australasia’s #1 real estate coach and trainer”, Tom Panos, is “stressed” after having “almost no buyers” at Saturday’s Sydney auctions.

The June quarter ANZ/Property Council Survey has been released, which is based on a survey of more than 750 industry respondents, conducted between 6-22 June 2022.

Below is a ripping post from Coolabah Capital’s Chris Joye.

Regular readers will know that I’ve been suggesting the Reserve Bank of Australia (RBA) will begin cutting interest rate rates in the second half of 2023 after it goes too hard on rate hikes and pushes the economy toward recession.

Yesterday’s 0.5% hike in the official cash rate (OCR) by the Reserve Bank of Australia (RBA) sent another arrow through the hearts of Australian mortgage holders.

The Housing Industry Association (HIA) has hailed Friday’s release of 40,000 new places under the Federal Government’s Home Guarantee Scheme, describing it as “great news for all aspirational home buyers in Australia”: The Home Guarantee Scheme comprises the First Home Guarantee, previously known as the First Home Loan Deposit Scheme, and the Family Home Guarantee.

CoreLogic reported that Australian rents grew by 9.5% in the year to June 2022 – the highest rate of growth since December 2007 when Australia was importing a record number of migrants.

The AFR’s latest survey of 31 economists reveals a median forecast for the official cash rate (OCR) of 2.35% by December and a peak of 2.85%.

Bill Evans of Westpac is serenely cheering on the Lunatic RBA.

The Reserve Bank of Australia (RBA) has updated its household finances data for the March quarter, which presents the financial position of Australian households at the housing market’s peak just one month before the RBA commenced hiking rates.

Earlier this month I argued that the Reserve Bank of Australia’s (RBA) aggressive interest rate hikes risk delivering “the recession we don’t have to have”, by smashing household consumption and ergo the economy.

By Gareth Aird, head of Australian economics at CBA: Key Points: The RBA is widely anticipated to raise the cash rate at the July Board meeting.