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Interest rates

This Month

Inflation and unemployment data in January will be key to the RBA board’s decision on interest rates.

Soft wages, growth revive chances of first RBA rate cut in February

The Reserve Bank has signalled it could be ready to cut the cash rate early next year if upcoming data meets expectations, bolstering Labor’s re-election prospects.

  • Michael Read
The IMF has called for regulators to consider tightening Australia’s already-stringent home lending laws, pushing back on a Coalition plan to relax home loan regulations.

IMF calls for home lending crackdown when rate cuts arrive

The International Monetary Fund says regulators should consider tightening Australia’s already-stringent home lending laws, pushing back on a Coalition plan.

  • Michael Read
The fund says there is a ‘significant risk’ inflation stops falling due to the still-strong jobs market and rapidly rising government spending.

‘Significant risk’ Australian inflation might stop falling: IMF

The IMF says the still-strong jobs market and rapidly rising government spending could cause disinflation to stall, leading to calls for fiscal restraint.

  • Michael Read
Macquarie’s Viktor Shvets says investors face plenty of uncertainty in 2025, but not as much risk as they think.

Macquarie’s Viktor Shvets nailed 2024. Here’s what he thinks will come next

No economic cycles? No mean reversion? Macquarie’s top global strategist’s radical view of markets challenges investors to consider how the world has changed.

  • James Thomson
Phill with wife Kerri Nixon is an investor who made 6-figure equity gains within 2 years.

10 suburbs for property investors to target in 2025

Investors can still score six-digit equity gain in 2025 despite the current housing market slowdown, but it requires thorough due diligence and smart property and area selection.

  • Nila Sweeney
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The Bank of England played Scrooge at its pre-Christmas meeting.

Bank of England pauses rate cuts as inflation picks up

The BoE did not join its rate-cutting peers in the US and Europe because, despite a flatlining economy, prices and wages have gathered pace.

  • Hans van Leeuwen
Traders watch Fed chairman Jerome Powell’s press conference in Washington.

Shares, dollar slammed after Fed walks back rate cut plans

The Australian dollar tumbled to a two-year low and investors sold off stocks after US policymakers predicted just two rate cuts in 2025 – fewer than the market hoped for.

  • Updated
  • Cecile Lefort
RBA governor Michele Bullock.

Traders dial up bets for February RBA rate cut

Money markets are slowly dialling up expectations for an early cut from the Reserve Bank in 2025. It’s a different story for New Zealand, which is now in a recession.

  • Updated
  • Cecile Lefort and Sarah Jones
US Federal Reserve chairman Jerome Powell was recast as The Grinch.

The Fed just killed the Santa rally

Jerome Powell gave investors a rate cut. But what sent Wall Street plunging was his message for 2025.

  • James Thomson
The ASX has surpassed even the most bullish forecasts this year.

The 10 biggest surprises to wrong-foot investors this year

No rate cuts, surging bank valuations and resilient iron ore prices are some of the calls that the market and experts were incorrect on over the last 12 months.

  • Updated
  • Alex Gluyas
Reserve Bank governor Michele Bullock and Treasurer Jim Chalmers.

Why RBA rate cut could come from Jim Chalmers’ subsidies

There is a quirk in the measurement of underlying inflation in the December quarter that may put pressure on the RBA to cut interest rates early next year.

  • John Kehoe
Here’s where you can get more bang for your buck this Christmas.

Why Australians should ditch Europe this Christmas

After a dire year for the currency, those heading to the northern hemisphere should consider looking elsewhere to get the most bang for their buck.

  • Updated
  • Cecile Lefort

Home sellers rake in record profits despite slowing market

More home sellers scored bigger profits in the September quarter, boosted by a broader lift in values nationally, but this could change next year, experts say.

  • Nila Sweeney
Sales at auto dealerships jumped 2.6 per cent, likely boosted by residents replacing motor vehicles damaged by Hurricanes Helene and Milton.

US November retail sales rev higher on new motor vehicles

Retail sales jumped 0.7 per cent last month, more than expected, and October’s sales were revised higher, consistent with the economy’s underlying momentum.

  • Lucia Mutikani
RBA Review panel member Renee Fry-McKibbin

Star pick for RBA board backed lower interest rates

Renee Fry-McKibbin was a monetary policy dove in 2022, according to Barrenjoey, backing in a low cash rate even as the central bank delivered supersized hikes.

  • Michael Read
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Treasurer Jim Chalmers with CBA’s Matt Comyn and Angus Sullivan.

How CBA’s $3 fee gambit nearly blew up the bank’s political capital

Bankers inside Commonwealth Bank’s retail division figured a small branch cash withdrawal charge was innocuous. They were wrong.

  • Lucas Baird and James Eyers
Former Bendigo and Adelaide Bank chief executive Marnie Baker, Treasurer Jim Chalmers and Australian National University professor Renee Fry-McKibbin.

What economists think about the RBA’s board shake-up

Renee Fry-McKibbin and Marnie Baker’s appointments were met with mixed reaction, with markets still betting on a one-in-two chance of an early 2025 rate cut.

  • Cecile Lefort

10 curveballs for investors (and no, they’re not all bad)

The market is heading into 2025 with a spring in its step. But Deutsche Bank strategist Jim Reid sees risks to both the downside and the upside.

  • James Thomson
Former Bendigo and Adelaide Bank CEO Marnie Baker and ANU economist Renée Fry-McKibbin will join the Reserve Bank’s monetary policy setting board.

Credible appointments will improve Reserve Bank board

Treasurer Jim Chalmers has selected two good candidates and should be congratulated for shoring up the RBA at a pivotal time in the inflation fight.

  • John Kehoe
Marnie Baker, Renée Fry-McKibbin, Jennifer Westacott, David Thodey,  Danny Gilbert and Swati Dave will come board members at the Reserve Bank.

Chalmers brings former bank CEO, economist on board in RBA overhaul

The appointment of ANU professor Renée Fry-McKibbin and former Bendigo Bank boss Marnie Baker sets the scene for the biggest shake-up of the central bank in decades.

  • Updated
  • Michael Read and John Kehoe

Original URL: https://www.afr.com/topic/interest-rates-5yo