Housing market faces brutal rates test
The pace of interest rate hikes could be breathtaking, sorely testing the stability of the country’s housing market.
The pace of interest rate hikes could be breathtaking, sorely testing the stability of the country’s housing market.
Multiple hikes are likely over the rest of the year, as the Reserve Bank scrambles to shift policy for the first time since 2010.
A huge jump in business and labour costs in March explains why the Reserve Bank surprised some by suddenly opening the door to an interest rate rise in June.
It’s through the prism of an ongoing global pandemic and recent forecasts of double-digit unemployment that the federal budget must be viewed.
The Reserve Bank’s decision to cast a wider net in search for evidence of wage growth across the economy looks like a smart move, because the existing data just isn’t adding up.
RBA’s Ian Harper says the central bank won’t follow the US on hikes, and the market is reading too much local relevance into Fed moves.
The Australian Treasury Secretary said aiming for full employment implies a slow, or ‘tapered’, withdrawal of monetary and fiscal stimulus.
Traders now expect the RBA will raise its official cash rate five times before year-end, up from four just weeks ago.
The central bank may lift interest rates four times in quick succession late in 2022, according to economist and former RBA board member John Edwards.
The Reserve Bank’s cautious narrative is frustrating bond traders who think the central bank is failing to see the risks posed by foreign inflation.
Original URL: https://www.theaustralian.com.au/author/james-glynn/page/9