Tag: Reserve Bank of Australia

Australian Housing Rents Soar Along With Interest Rates

Annual growth in housing rent in Australia has reached a 14-year high, making life more difficult for renters across the country at a time when interest rates continue to hike. According to CoreLogic’s Quarterly Rental Review, the national rental index grew by 0.9 percent in the month to June and 2.9 percent in the June…


Reserve Bank of Australia Raises Cash Rate to 1.35 Percent Warns More Expected to Come

The Reserve Bank of Australia (RBA) has lifted the cash rate by another 0.5 percent to 1.35 percent at its board meeting on July 5, continuing its effort to bring inflation under control. In a statement released after the meeting, RBA governor Philip Lowe said the central bank’s move was necessary to end the unconventional…


Australian House Prices Continue to Fall in June as Interest Rate Hikes Bite

Australian house prices are falling, with housing experts expecting to see more significant downward trends in the upcoming months as the Reserve Bank of Australia (RBA) continues to raise the cash rate. The CoreLogic’s home value index dipped 0.6 percent in June, the second month in a row, following the RBA’s second cash rate hike…


Australia’s Largest Bank Surprises Lending Market With Massive Fixed Rate Rises

Australia’s largest bank has suddenly raised its fixed interest rates for homeowners and investors by a massive 1.4 percent on June 30, a move that has surprised the lending market. According to an analysis by the financial comparison website RateCity, the Commonwealth Bank of Australia (CBA) lifted its one-year fixed rates for owner-occupiers to 4.99…


Australia Will Not Fall into Recession: Reserve Bank Governor

Australian central bank governor Philip Lowe has told the public that it is unlikely for Australia to experience a recession due to rising interest rates. He also does not expect the Reserve Bank of Australia (RBA) to follow the U.S. Federal Reserve in raising the cash rate by 0.75 percent in one go to combat…


Australian Consumer Confidence Plunges as Higher Inflation Looms

More and more Australian consumers are losing confidence in the economic outlook as the Reserve Bank of Australia (RBA) warns higher inflation and further interest rate hikes are on the horizon. The Westpac-Melbourne Institute survey indicated that the consumer sentiment index dropped 4.5 percent to 86.4 in June following the RBA’s decision to raise the…


Australia’s Largest Bank Downgrades Growth Forecast as OECD Warns on Interest Rate Hikes

The largest bank in Australia has slashed its economic growth forecasts as it expects the central bank to continue raising interest rates throughout the latter half of 2022. Gareth Aird, the head of Australian economics at the Commonwealth Bank of Australia (CBA), anticipated that the RBA would lift the official cash rate by another 0.5…


Industry Warns Australian Government Against Wage Increase After Aggressive Cash Rate Hike

Australia’s peak industry group said the country was at risk of a “death spiral” of wages, inflation, and interest rates. “We are unfortunately in a period where we are going to see increasing interest rates if we continue to see calls for wage increases that are not sustainable,” Australian Industry Group CEO Innes Willox told…


Reserve Bank of Australia Shocks With 50 Basis Point Cash Rate Hike

The Reserve Bank of Australia has revealed its decision to increase the cash rate by a massive 50 basis points, from 0.35 percent to 0.85 percent, with “further steps” to come. Governor Philip Lowe said the hike came in response to higher-than-expected inflation to “assist with the return” of inflation to the two to three…


Australia’s Central Bank Hikes Rates to Control Soaring Inflation

The Reserve Bank of Australia, the country’s central bank, has increased the cash rate by a massive 50 basis points, from 0.35 percent to 0.85 percent, with “further steps” to come. Governor Philip Lowe said the hike came in response to higher-than-expected inflation to “assist with the return” of inflation to the two to three…