Australian interest rates

It’s a laugh a minute now for house price bears.

It looks ugly for risk assets as it shrinks demand to fit constrained supply.

The Reserve Bank of Australia (RBA) is now widely tipped by economists to increase the cash rate in June.

Note from Westpac.

I have no sympathy for the RBA.

The Reserve Bank of Australia (RBA) has updated its indicator lending rates for March, which shows mortgage rates across Australia rising: As shown in the above chart, the average discount variable mortgage rate finally rose by 0.15% from its pandemic low to 3.6% in March.

Find below RBA governor Phil Lowe’s Monetary Policy Decision, which left Australia’s cash rate at its record low 0.1% [my emphasis]: At its meeting today, the Board decided to maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent.

ANZ-Roy Morgan’s latest consumer confidence report shows that sentiment remains in the gutter on increasing concerns around inflation.

A quick update on yield curves this morning.

With each passing week, it gets more outlandish.

By Gareth Aird, head of Australian economics at CBA Key Points: An RBA tightening cycle looms and we continue to expect the RBA will deliver the first hike in the cash rate at the June Board meeting.

For much of this year, I have been skeptical of interest rates increases in Australia.

There are some perverse things happening in bond yields.

The Conversation’s Peter Martin has published an interesting article explaining why the Reserve Bank of Australia (RBA) will be reluctant to lift interest rates, despite soaring inflation.

Goldman with the note.

Stuart Wemyss, an independent financial adviser, penned an article playing down concerns that rising interest rates could crash Australia’s property market.

The Australian Treasury is preparing a review of the Reserve Bank of Australia (RBA), examining how the Bank’s first independent examination will proceed.

Australia is headed for the highest interest rates in the developed world.

Unions covering workers in sectors such as public hospitals, construction and hospitality are looking at wage claims of between 5% and 6%, with their members no longer happy with 3% pay rises.

Amusing isn’t it?

In 2020, we saw a blowoff in stimulus.