Jim Chalmers has downplayed suggestions the Federal Budget has the largest role to play for besieged households seeking cost-of-living relief after the RBA’s caution rates may have to stay on hold for longer.
Adrian Lowe
Interest rates will be higher for longer. That’s the blunt, harsh reality of the latest economic expectations of the Reserve Bank of Australia in the “bumpy” last mile of getting inflation back to target.
Interest rates have been left on hold with the Reserve Bank of Australia keen to keep monitoring the economy despite higher-than-expected inflation this year.
RECAP: Some suggested that last month’s higher-than-expected inflation reading had increased the chances of one more hike. But the RBA has erred on the side of caution and kept the cash rate on hold.
Daniel Newell
Markets predict the RBA will hold fire on a Tuesday rate rise but persistent inflation and signs the Federal Government is loosening the purse strings give reason to keep up the pressure.
Matt Mckenzie
Australia’s central bank will likely keep its key interest rate at a 12-year high and stick with it for much of the year to restrain inflationary pressures underpinned by a surprisingly tight job market.
Swati Pandey
The RBA has been encouraged by yet another key global economic body to keep interest rates on hold to combat rising inflation, while the Federal Government has been urged to tackle lagging productivity growth.
Impending income tax cuts are a “real problem” for the Federal Government and may even pose a bigger threat to inflation than the Reserve Bank has factored in, economists say.
The Reserve Bank of Australia has been told interest rates may need to stay higher for longer to ensure inflation continues to slide and economic growth does not fall significantly.
Stubborn inflation, strong jobs growth, and a rebounding economy could force the Reserve Bank to deliver further rate hikes, economists have warned.
Jack Quail
The World Bank expects iron ore prices to stay above the crucial $US100 ($153) a tonne mark despite subdued demand for steel, with the forecast at odds with gloomy predictions made by many analysts.
Cheyanne Enciso
Don’t expect an interest rate cut any time soon. That’s the blunt message from economists who now reckon the RBA will have to keep rates on hold for longer after inflation came in hotter than expected.
Suggestions from Fed chair Jerome Powell that interest rate cuts could take longer than expected has sent jitters across markets and pushed bond yields higher but impact on Australia may be minimal.
Consumers are saving hundreds of dollars each month as they cut back on luxuries and discretionary spending amid a tough cost-of-living squeeze. But is there respite ahead, and what worries West Aussies most?
Businesses are holding on to below-average levels of confidence in the future — despite consumer sentiment sinking further to levels only seen during the recession of the early 1990s.
It’s been five months since Australia last raised interest rates and in the interim inflation has moderated and the economy slowed to a crawl. Yet the RBA insists it can’t rule out another hike.
Australia should expect China will be a less significant driver of its economy in future and instead look to Japan and India for growth opportunities, a leading economist says.
Australia’s productivity performance has been lagging for a ‘considerable time’ but signs are emerging that small firms are boosting investment in innovation to compete on the global stage.
Even though some are having trouble meeting debts and essential expenses, loan arrears rates are still low. The RBA expects most Australians will manage even if inflation proves difficult to push down.
The latest price hike figures have underscored concerns of the Reserve Bank that getting inflation lower will be bumpy, and experts say rates could stay higher for longer.
Borrowers already experiencing a squeeze on their household finances are set for a tough year, the central bank says, and some may run out of savings by the end of next year if rates stay high.
The Opposition is threatening to amend key legislation crucial to the future of the Reserve Bank after last year’s review found it needed an overhaul at the top, but the government is holding firm.
Governor Michele Bullock says weaker iron ore prices and the impacts on the Chinese economy are key watchpoints as the RBA aims to tread carefully in pulling inflation back to target.
The stomach-churning days of interest rate increases are all-but behind us. So the question now is when will the RBA board decide to loosen the screws? We may get a hint on that today. Stay tuned.
