Posts tagged "Australian interest rate"

The RBA has kept interest rates on ice in a widely expected move that will be welcomed by financially strained borrowers.

Australia’s inflation rate has dived from 5.6% to 4.9% in October, pushing it below 5% for the first time in 20 months.

The prices quoted on the Australian Securities Exchange implied a 52% probability of an increase in the Reserve Bank cash rate next Tuesday and a 48% probability of no change.

If the Reserve Bank does push up interest rates again, the most likely next date is its next board meeting, on Melbourne Cup Tuesday.

What if the Reserve Bank achieves something truly remarkable – a steady decline in inflation without further interest rate increases, and without bringing on a recession?

The Reserve Bank decided to keep interest rates on hold at 4.1% because it thinks there’s a chance – just a chance – it has lifted them all it needs to.

With all signs pointing to an economic cool-down and further drops in consumer spending, the June rate hike is likely to rattle SMEs running out of expenses to cut.

The RBA’s latest forecasts now assume no further rate rises will be needed for inflation to fall back to the central bank’s 2-3% target range by mid-2025.

The decision to hike interest rates again after a month on pause has raised concerns the Reserve Bank could nudge the economy into a recession.

Small business demand for non-bank lending solutions has risen 50% over the last year, business lender ScotPac says, suggesting the time and effort required to obtain traditional financing, along with rising interest rates, are causing entrepreneurs to look further afield.

Inflation is likely to keep easing as both the “headline” and “trimmed mean” measures are heading in the right direction.

Unemployment has barely budged even as the central bankers do all they can to cool the economy.