Category Archives: Interest rates

ACTU will not push for spot on RBA board as review released – as it happened

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Bandt: if budget can afford stage-three tax cuts it can afford to lift Australians out of poverty.

Bandt is also highly critical of the government as it appears set to reject a call from its very own expert advisory panel to raise the jobseeker rate. He says if the budget can afford to keep stage-three tax cuts, it can afford to lift Australians out of poverty:

Everyday people are not causing inflation. They are the victims of inflation. Now, Labor has found over a quarter of a trillion dollars for tax cuts for billionaires and politicians that can’t lift people out of poverty.

Labor’s not making hard choices in this budget, they’re making everyone else make hard choices, like whether to pay for the rent or whether to put food on the table.

We’ll have a look at all of the recommendations of the review, and the government’s response when it’s released fully but a major party stitch up isn’t going to fix the inflation problem.

We need more than just outsourcing the issue of tackling inflation to the RBA, which is what Liberal and Labor want to do. We know that it is excessive profiteering that is driving higher prices and inflation in this country. It’s not the everyday people.

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RBA to have separate rate-setting panel, but inflation target expected to remain

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First full review for decades recommends raft of changes, including splitting the board into two to enable more focus on how interest rates are decided

Australia’s Reserve Bank board will be split between a special panel to handle interest rates and one dealing with currency issuance and other tasks, as recommended by the first formal review of the central bank since the 1990s.

Treasurer Jim Chalmers is expected to release the full review report, titled “An RBA fit for the future”, on Thursday. He said he would work “across the parliament and with the RBA” to implement in principle all 51 of the review’s recommendations.

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Australia news live: Labor will not lift jobseeker despite recommendation for ‘substantial increase’ to base rate

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Joyce describes Indigenous voice as ‘a consultative power by selected group’

Joyce says the voice will affect all Australians, not just Indigenous Australians, because a selected rather than elected body will move away from the democratic process.

It is a massive change to how democracy works because we’re now dealing with a consultative power by selected group, not an elected group … and that move away from the democratic process.

What I’m asking you is that you say on one hand that there’s no legislation … But you also make a claim about a model which doesn’t exist, you can’t have it both ways.

In all the narrative from Mr Pearson, to his Ms Langton, to the Calma Langton report, they talk about selection, not election.

So then you do think you’ve got a model?

Then let us see the legislation.

I just don’t believe that we should be inserting a racial clause into our constitution in 2023.

Tick the box that you believe in racial differentiation. You’ve just ticked the box that you believe in racial differentiation.

It’s the form that it comes in. I’ve got no problems with the statement of fact that Indigenous Australians were the first people in Australia.

I’ve got no problems with the constitutional recognition referendum on the premise that we see the details first … I’m talking to about a more proper and pertinent alternative approach, which means that we get all the details not some of the details, we see the legislation before we vote, we don’t get a blank check. And we also make sure that we see the proper legal opinion before we vote not someone’s opinion of the opinion, which is what Mr Albanese is going to give us.

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Australia news live: Peter Dutton confirms Liberals will campaign against Indigenous voice to parliament

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Opposition leader continues his narrative of calling the proposal a ‘divisive Canberra voice’. Follow the day’s news

Birmingham calls for end to culture wars on ‘fringe issues’

So Simon Birmigham wants the party to modernise, but keep its Liberal values. So essentially ditch the culture wars and get back to Liberal basics – small government, small business, families (although Birmingham argues for inclusive family support now).

Well, it is, in that it concerns only a relatively small numbers of people, frankly, on either side of the debate. And so having, in the lead-up to the Aston byelection, debate ensuing in the Victorian division of the Liberal party around trans rights, Nazis, all of those sorts of things that were being thrown around, was clearly very, very counterproductive.

And I think that’s acknowledged right across the leadership of the Liberal party. And so trying to make sure that, whilst there has to be space to deal with issues where international sporting organisations are making rules and laws, but we shouldn’t take that into into a realm where suddenly there are public protests supported by Liberal MPs or anything that suggests there is a sense of disrespect other than careful, thoughtful policy consideration.

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Australia news live: seizure of $270m worth of heroin is Queensland’s biggest; RBA interest rates decision due

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Australians will find out at 2.30pm AEST whether the Reserve Bank will pause its interest rates hikes after 10 consecutive rises. Follow the day’s news live

Australia’s new high commissioner to the UK, Stephen Smith, says becoming a republic is “inevitable” even if Australians are proud to have the British monarch as their head of state.

In his first interview since taking up the post, Smith told the Times newspaper that most British people would be “indifferent” to Australia getting rid of the monarchy and it would not damage the countries’ relationship.

There is a lot of affection and respect for the monarchy in Australia.

That affection and respect hasn’t gone away because of Australia contemplating from time to time what it should do about its constitutional arrangements.

My personal view is it’s inevitable. But how that’s progressed is entirely a matter for the Australian government of the day.

Our public-sector workers do a great job serving their fellow Victorians and we’re proud to support them. In addition to wage increases, workers will be able to obtain a sign-on bonus while productivity improvements will bring the potential for further advancement of conditions.

The policy provides fair outcomes for employees while being responsible as we deal with the types of budget challenges faced by families, businesses and governments across the world.

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Australia’s soaring interest rates have trapped ‘mortgage prisoners’ into crushing repayments

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A growing cohort of pandemic-era homebuyers are also unable to refinance because they no longer meet lenders’ standards

A growing number of Australian have become “mortgage prisoners” – trapped by crippling mortgages they are unable to renegotiate.

This growing cohort of pandemic-era homebuyers are unable to refinance because they no longer meet lenders’ standards after recent rate increases.

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Australia politics live: rate rises must stop with inflation coming down, Greens say; Brereton named anti-corruption commissioner

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Commission appointments must be signed off by the governor general. Follow live

Sorry – I am told by a couple of senators that it was “technically” 4.13am.

So expect to see a few bleary-eyed senators in the coffee lines this morning.

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Australia’s annual inflation rate falls to 6.8% fuelling hopes cost of living pressures are easing

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Figures indicate Reserve Bank may consider pausing interest rates at its next meeting on Tuesday

Australia’s annual inflation rate slowed in February, led by smaller rises for fuel and housing, adding to evidence that the worst of the price increases has passed.

The consumer price index rose at annual pace of 6.8% last month, the Australian Bureau of Statistics reported on Wednesday. Economists had expected the annual rate would have dropped to about 7.2% from January’s 7.4% pace.

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NSW election 2023 live results: polls have closed and votes are now being counted after Dominic Perrottet and Chris Minns made final pitches – latest news

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Premier casts vote in seat of Epping and Labor leader says he is ‘feeling optimistic’ as party hopes to return to power after 12 years in opposition

Dominic Perrottet has given some more expansive comments after voting a short time ago in his seat of Epping. He and Labor leader Chris Minns spoke last night, exchanging text messages and wishing each other good luck.

Here’s some more from the premier:

It’s a real honour to serve the people of New South Wales. There’s a lot at stake in this election. I will be working hard all day.

It’s not about the Liberal or National party. Ultimately, elections are about our people. My team has the plan to deal with the challenges of today, but we’re all wanting to set up the state for the children.

Our party has been here for 12 years, it’s transformed New South Wales. We were the worst performing economy, the state had stalled. We’ve turned that around. We’ve built schools and hospitals, the motorways have transformed people’s lives. But it’s all about the future and where we go from here. I believe my team has the plan, the experience, energy and ideas to take the state forward.

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Britain’s biggest banks under pressure to pass on higher interest rates to savers

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Unite says their analysis shows banks have made £7bn in extra profit from the rise in borrowing costs

Britain’s biggest banks are under pressure to pass on higher interest rates to savers after figures showing they have made an extra £7bn by refusing to do so, and as they stand to benefit from a tax cut announced by Jeremy Hunt.

On the day the Bank of England is expected to announce a further rise in interest rates, the Unite trade union said banks had already made billions of pounds in extra profit from the dramatic rise in borrowing costs.

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ECB raises eurozone interest rate despite banking sector fears

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Concerns half-point could set off domino effect across financial industry knocked by Credit Suisse crisis

The European Central Bank has raised interest rates across the eurozone by 0.5 percentage points, despite fears that higher borrowing costs could set off a domino effect across a banking sector already reeling from a collapse in confidence in Switzerland’s second largest lender, Credit Suisse.

Officials at the ECB, the central bank covering the 19-member euro bloc, said inflation was likely to remain high “for too long”, forcing it to continue with its planned run of rate increases.

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ECB faces dilemma over interest rate rise amid Credit Suisse crisis

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European Central Bank could opt for smaller increase as concerns spread over health of banking system

The European Central Bank is facing a dilemma over whether to push ahead with its plans for a large interest rise on Thursday amid fears over the strength of the banking system after Wednesday’s heavy sell-off of the Swiss banking firm Credit Suisse.

After raising interest rates since last summer at a record pace to tackle high inflation across the eurozone, the ECB had in effect committed to another 0.5 percentage point increase in borrowing costs this week.

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UK homeowners still better off than renters despite spike in interest rates

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Average monthly cost of owning 3-bed home is £500 a year less than renting, but the gap is narrowing

Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax.

The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more.

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Silicon Valley Bank collapse ‘could force central banks to stop interest rate rises’

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Analysts say US Federal Reserve will probably reject further increase in borrowing costs next week

The world’s most powerful central banks could be forced to stop raising interest rates after the Silicon Valley Bank crisis, economists have said, amid growing signs of financial stress linked to rapid increases in borrowing costs over the past year.

Analysts said the US Federal Reserve would probably leave interest rates on hold at its decision next week, as the meltdown at the California-based technology lender ripples through global financial markets.

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Sydney trains delayed due to ‘communication issue’ – as it happened

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Facing up to financial distress

It is not just academic though – there have been increased reports of people feeling distressed because of financial pressures.

When people are under extreme financial pressure, that has implications for their wellbeing more broadly. I mean, I think that is understood. And I’m sure that the governor in accepting that meeting understands that.

What we want to do as government is make life a little bit easier for people where we can, whether it’s with energy bills, whether it’s with cheaper early childhood education, cheaper medicines, trying to get wages moving again, financial security is a big part of what we’re focused on, particularly when these cost-of-living pressures are so acute.

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Philip Lowe leaves clues his rate-rising work may be done – bar an Easter finale | Peter Hannam

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The RBA governor has ditched his hawkish tone and the odds now seem to favour just one more rise, probably in April – but that could change

There are, as Reserve Bank governor Philip Lowe reminded us as he announced a record 10th consecutive interest rate rise, “a range of potential scenarios for the Australian economy”.

One scenario, it seems, involves interest rates not rising much further. In fact, the RBA’s pre-Easter gathering on 4 April may mark the final rate hike in this cycle.

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Australia politics live: RBA interest rates decision due today; Atlassian cuts 500 jobs in latest tech layoffs

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Australian software company to cut about 500 jobs, representing 5% of its workforce. Follow the day’s news

Climate change minister: many industries cannot comply with emissions reduction without offsets

What about what David Pocock wants – limits on the number of carbon credits big polluters can use? Chris Bowen says:

My position publicly is the same as it is privately – that if you put hard caps on carbon credits when you’re requiring 4.9% emissions reduction each and every year, then that is a problem, because you’ve got industries which won’t be able to comply with that without without accessing [credits].

Now, people say you can’t offset your way to net zero and you can’t offset your way to the 1.5 degrees. And I agree with that.

Mr Bandt with respect says ‘well, there’s this pipeline of projects and Labor wants to approve them’, now that is not the case.

What there is, is a register of projects which companies have … filled in and said one day we might want to develop this or we’re interested in developing this … many of them are yet to get environmental approvals, finished final investment, decisions for board approval, insurance, finance, etc.

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UK inflation could fall below 2%, Citi forecasts

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Falling gas prices and CPI decline could boost public finances before 2024 general election

Britain’s inflation rate could fall to below 2% by the end of the year, according to new financial industry forecasts, handing the chancellor a boost to the public finances before a general election in 2024.

Predictions that falling gas prices will accelerate the decline this year in the consumer prices index (CPI) from last month’s level of 10.1% could also support a recovery in household living standards and persuade the Bank of England to cut interest rates earlier than expected.

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Guardian Essential poll: most think RBA rate hikes an overreaction as shine comes off Albanese

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Majority believe government at least partially to blame for rises but don’t assume Coalition would manage them better

A majority of voters believe the Reserve Bank of Australia has overreacted in jacking up interest rates to tame inflation, and people worry economic conditions will get worse over the next 12 months, according to the latest Guardian Essential poll.

The latest survey of 1,044 voters demonstrates cost-of-living pressure is starting to bite in the community after nine consecutive cash rate hikes.

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The RBA’s ‘narrow path’ on inflation and interest rates: six things we learned from Philip Lowe

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When the governor and colleagues faced the economics committee, rates were the focus – how high will they go, and will they stall the economy?

Reserve Bank governor Philip Lowe and fellow senior executives fronted the economics committee of the House of Representatives on Friday for about three hours.

Here are six things we learned.

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