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Interest rates

Yesterday

Christine Lagarde, president of the European Central Bank.

ECB cuts rates as bets build on a summer pause

The European Central Bank has cut interest rates for the eighth time, leaving rates in the neutral zone.

Scott Nuttall says private equity can get caught up in a genius/idiot cycle.

KKR CEO: Don’t believe ‘private equity is dead’ narrative

But Scott Nuttall, the private equity giant’s co-chief executive, predicts a shakeout as higher interest rates bite poor investments made during the pandemic.

Jerome Powell remains a key target for Donald Trump.

Trump renews call for Powell to cut rates as economy slows

Activity at US service providers unexpectedly contracted last month for the first time in almost a year and private companies throttled back hiring.

This Month

The Aussie has strengthened amid Donald Trump’s trade war.

US dollar slide threatens super fund returns

The rising Aussie against the greenback is forcing Australia’s biggest investors to increase protection of overseas assets.

Donald Trump’s trade war could force businesses to shelve hiring and investment plans and prompt consumers to rein in spending, RBA chief economist Sarah Hunter says.

Trump’s tariffs could hit growth and spark sell-off: RBA

Donald Trump’s trade war could force businesses to shelve hiring and investment plans and prompt consumers to rein in spending, RBA chief economist Sarah Hunter says.

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Interest rates

Why low interest rates aren’t coming back

Cheap money isn’t coming back. Bigger deficits, the energy transition and investment in AI mean the cost of borrowing will be higher in the years ahead.

US President Donald Trump speaks at US Steel Corporation’s Mon Valley Works-Irvin plant on Friday in Pennsylvania.

ASX to rise despite US recession fears growing

Jobs figures will be the first in a series of data points that will show how the world’s largest economy has reacted to President Donald Trump’s tariffs.

May

The Chanticleer podcast features James Thomson and Anthony Macdonald.

The TACO theory | AI unleashes Telstra | Inside Healthscope’s collapse

This week, what a telco’s plan tells us about the AI boom, the biggest corporate collapse since the pandemic and the new theory moving the market.

The US central bank continues to grapple with the impact of Trump administration tariff policies.

Trump tells Powell he is making a mistake by not cutting rates

The president and the US Federal Reserve chairman met at the White House to discuss the nation’s growth, employment and inflation.

Victorian Premier Jacinta Allan and Treasurer Jaclyn Symes earlier this month. Despite steep deficits, investors shrugged at last week’s Victorian budget.

Investors shrug at Victorian debt bomb in search for new safe haven

For all the talk about the age of market vigilantism and deteriorating public balance sheets, there’s no lack of interest in Australian state government bonds.

“The staff viewed the possibility that the economy would enter a recession to be almost as likely as the baseline forecast,” the minutes said.

Fed well positioned to wait for clarity on outlook, minutes say

Policymakers judged the risks of both higher unemployment and inflation had risen since their March meeting, primarily due to the potential impact of tariffs.

Lisa Murray and Michael Read

Are house prices about to take off again?

This week on The Fin podcast, economics correspondent Michael Read on why the Reserve Bank is cutting rates and what it means for people like him trying to buy a house.

Shoppers at a supermarket.

Inflation data no barrier to another RBA rate cut

Headline inflation remained within the central bank’s target band in April, bolstering market confidence for further easing

Taylah Treay, 25.

Home buyers’ FOMO ramps up after rate cut

Prospective home buyers are rushing to get pre-approved following the second cash rate cut this year before prices rise even more.

Tim Toohey was chief economist at Goldman Sachs Australia for more than a decade.

Former Goldman economist splits from market, predicts big rate cuts

Now at Yarra Capital, Tim Toohey says the RBA will slash interest rates more aggressively than expected. Other economists say there’s little chance of that.

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The Chanticleer podcast features James Thomson and Anthony Macdonald.

Rate moves ahead? | Forrest’s China warning | Melbourne airport melee

This week, the chooks look at Andrew Forrest’s iron ore warning, the path for interest rates, and a battle over one of the country’s busiest airports.

The new battleground is how quickly the RBA cuts rates this year.

Huge public spending secures soft landing

Interest rates would be a lot lower in Australia were it not for the government spend-a-thon.

“I don’t think the American government wants to leave China,” Dimon said.

Dimon warns of US stagflation risk, says Fed right to hold rates

“I don’t agree that we’re in a sweet spot,” the JPMorgan Chase chief executive said, adding that the US central bank was right to wait and see.

RBA deputy governor Andrew Hauser.

‘Don’t count China out’ in Trump trade war, RBA deputy says

Andrew Hauser says China’s economy is strong enough to withstand Donald Trump’s tariffs and Australian companies remain upbeat about Asia’s largest economy.

House in Gunnedah.

The bond market’s dire mortgage warning is at odds with the RBA

If Australians could fix their mortgages “US style” for 30 years as some have suggested they should, we would be staring at decade-high home loan rates.

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