Category Archives: Interest rates

Australia’s big four banks not making it easy for customers to get bonus interest despite watchdog’s calls

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Guardian analysis found no major bank has adopted ACCC recommendations in full – but NAB, CommBank, Westpac and ANZ say they offer in-app alerts

Australia’s big banks have not implemented several recommendations designed to help customers qualify for bonus interest rates on savings products, more than 18 months after the regulatory advice was issued.

Two in three customers of bonus accounts miss out on the headline interest rate and instead receive a far smaller base rate, an Australian Competition and Consumer Commission inquiry found in late 2023.

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UK inflation eases slightly to 3.4% as food price rises offset transport cost falls

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Annual rate slows in May from 3.5% in April despite record increase in chocolate prices

Inflation in the UK eased slightly to 3.4% last month as a steep fall in air fares and petrol prices was offset by a jump in the cost of food.

May’s decline in the consumer prices index (CPI), down from the official figure of 3.5% for April, complicates the Bank of England’s interest rates decision on Thursday, although policymakers are still almost certain to hold interest rates at 4.25%.

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Reeves eyes Gulf trade pact as ‘next deal,’ Bank of England’s Pill says pace of interest rate cuts ‘too rapid’ – as it happened

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China and Australia cut interest rates; Shell faces protests calling for clean-up in Niger Delta

Here’s our full story on Greggs.

Sales at Greggs have picked up after the UK’s biggest bakery chain branched out into iced drinks, pizza boxes and a macaroni cheese that has gone viral on social media.

These are important issues and we respect the right of people to express their view. But for many years the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines, or saboteurs.

These challenges are managed by a joint venture which Shell’s former Nigerian subsidiary, SPDC, operated, cleaning up every spill from the joint venture’s facilities.

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Rising goods prices could delay UK interest rate cuts, says Bank policymaker

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Bank of England’s Catherine Mann wary of firms looking to rebuild profit margins after a squeeze

Businesses will need to show they are keeping a lid on prices before there can be further interest rate cuts, according to the Bank of England interest rate-setter Catherine Mann.

In a warning to retailers and consumer goods companies to resist pushing up prices by more than the increase in their costs, Mann said she was wary of firms looking to rebuild their profit margins after a squeeze in recent years.

“I need to see the loss of pricing power, I need to see that firms are starting to be much more moderate in setting their prices,” she said.

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Australian property bounce after Labor wins second term, early data shows

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More buyers enter the market as auction clearance rates rose to 70% in the week following the election, figures show

Australia’s housing market has surged in the immediate aftermath of Labor’s emphatic election victory, preliminary data shows, while analysts say an anticipated string of rate cuts may see the trend continue.

Auction clearance rates rose to 70% in the week following the election, according to preliminary Cotality data, from 60% in the middle of last month. An auction clearance rate of 70% or above typically indicates sellers are in control of the market.

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UK interest rate cut: what does it mean for mortgages and savings?

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The Bank of England has voted to cut the cost of borrowing, reducing the base rate to 4.25%. Here’s what it means for you

The Bank of England has cut interest rates from 4.5% to 4.25%.

It follows two interest rate cuts in the second half of last year, and another one in February this year.

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UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

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Move follows run of downbeat economic data and looks to cushion UK from Trump’s trade war fallout

Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump’s trade war.

The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, should lead to cheaper mortgages for homeowners.

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China to cut interest rates in response to trade war with US

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Half-point cut to be made to banks’ reserve requirement ratio and 1tn yuan released into banking system

China will cut interest rates and inject some much-needed liquidity into the domestic economy, as the country steels itself for a bruising trade war with the US.

The People’s Bank of China said on Wednesday it would make a half-point cut to the banks’ reserve requirement ratio, its benchmark interest rate, and release 1tn yuan (£103.6bn) into the banking system.

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ECB cuts rates for third time this year as Europe braces for Trump tariffs

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Quarter-point cut in main rate to 2.25% aimed at tackling slowdown in eurozone growth and impact of US border taxes

The cost of borrowing has fallen across the 20-member euro area for the third time this year after the European Central Bank cut its main interest rate to 2.25% in response to slowing growth and Donald Trump’s tariffs.

The Frankfurt-based bank cut its benchmark deposit rate by a quarter of a percentage point on Thursday, in line with economist expectations, to tackle a slowdown in the bloc and the impact from the border taxes imposed earlier this month on all EU imports into the US.

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Adelaide becomes fifth Australian capital where median house value exceeds $1m

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Across Australia, home prices grew at slowest rate in two years and unit prices fell in March, Domain says

Million-dollar houses are now more common than homes costing less than seven figures in five of Australia’s capital cities.

Adelaide’s median house value passed $1m in March, even as unaffordable costs and high interest rates saw home prices grow at their slowest rate in two years and unit prices fall.

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Bank ‘should cut UK interest rates to at least 4% in May amid tariff turmoil’

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Ex-Bank of England deputy governor Charlie Bean says cut of 0.5 points needed because of ‘crazy situation’ in US

The Bank of England should use its meeting next month to cut interest rates by at least half a percentage point to 4% in response to the financial turmoil created by Donald Trump’s trade tariffs, the former deputy governor Charlie Bean has said.

He believes an aggressive strategy is needed to combat the fallout from Trump’s tariff war, which has knocked trillions of pounds off global stock markets, undermining business and consumer confidence.

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Bank of England in no hurry on interest rates – but cuts will come

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Despite the decision to hold at 4.5%, businesses and households can take a confident view of the UK’s prospects

Bank of England policymakers might be on a “go-slow” as they look forward to interest rate cuts this year, but the direction of travel is almost certain.

After a meeting on Thursday when interest rates were kept on hold at 4.5%, City investors bet there would be more reductions in the cost of borrowing this year, most likely two cuts reducing the rate to 4%.

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UK economy shrinks unexpectedly in blow to Rachel Reeves

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ONS data showing 0.1% fall in GDP in January comes less than two weeks before chancellor’s spring statement

The UK economy contracted by 0.1% in January, dealing a blow to Rachel Reeves before the spring statement later this month.

In a surprise to City economists, who expected 0.1% growth in January, the Office for National Statistics data showed the services sector failed to offset a decline in the industrial sector and maintain growth from the previous month.

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Australia news live: NSW health system ‘catastrophically let down’ toddler’s family, minister admits

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Two-year-old waited in emergency department for three hours before suffering a cardiac arrest and dying. Follow today’s news headlines live

Victoria to offer contactless public transport tickets from next year

Victorians will be able to use their phones, bank cards or smartwatches to pay for public transport travel from “early next year in a staged approach”, according to reports.

Following a successful start of a ticketless bus trial in Wangaratta, the Allan Labor Government will begin switching on tap-and-go technology across Victoria’s public transport network from early next year in a staged approach – meaning some passengers will soon be able to use their bank cards, phones and smart watches to travel on full fare tickets.

The new ticketing system will continue to be underpinned by extensive technical testing and will be carefully rolled out starting with rail from the beginning early next year – allowing full fare passengers more ways to pay for their travel.

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UK inflation jumps to 3%, reducing chance of early interest rate cut

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Annual CPI inflation rate hit 10-month high in January in blow to ministers amid rise in food bills and fuel costs

UK inflation accelerated faster than expected at the start of this year, eating into workers’ wages and reducing the chance of an interest rate cut next month.

The consumer prices index (CPI) measure rose to 3% in January, the Office for National Statistics reported, up from 2.5% in December.

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As an election looms, will Australians remember Labor for one rate cut or the 12 hikes before that?

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The Albanese government had been sweating on the RBA decision, which clears the way for an election as soon as early April

Jim Chalmers tried to say he wasn’t taking credit for the big banks dropping their interest rates, but the sense of satisfaction – or perhaps relief – among other Labor MPs was palpable in the moments after the Reserve Bank of Australia announced its cut of 25 basis points.

Labor MPs Justine Elliot and Kristy McBain, both under pressure in tough races, tweeted “breaking” updates within two minutes of the announcement. Within a few more minutes, the likes of Jerome Laxale, Josh Wilson, Pat Conroy, Shayne Neumann, Mark Butler, Helen Polley, Tony Sheldon and the retiring Graham Perrett had also taken to their social media accounts to broadcast the news.

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RBA expected to give mortgage holders ‘breathing capacity’ on interest rates

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But business shouldn’t hold its breath for any immediate effect interest rate cuts might have on spending habits – which can take up to nine months

The Reserve Bank is expected to provide “breathing capacity” to households with mortgages by cutting the official cash rate for the first time since the early days of the Covid pandemic.

The market is pricing in a 90% chance of a 25 basis point decrease on Tuesday, according to the ASX’s rate indicator, although several economists have warned they expect the decision to be closer than the odds suggest.

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Australia news live: embattled casino operator Star offered $650m lifeline; name of next cyclone changed from Anthony to avoid using PM’s name

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Hume rules out working with teals if Coalition wins 70-72 seats

Jane Hume was asked whether the Coalition was in a position to form any alliances with the crossbench, amid new polling from YouGov showing neither party looks to be coming out with a clear majority.

That would cause chaos, and would cause chaos politically and economically as well.

On average, the teals have voted with the Greens around 78% of the time, with Labor around 75% of the time, and with the Coalition around 18% of the time.

I think it’s really important to look at what people do rather than what people say. We’re planning on going to this election to win the election, because Australians deserve better than what they’ve had for the last three years.

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Bank of England’s Mann backed rate cut as she sees inflation ‘hump’ easing

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Downturn in jobs market will mean workers will be unlikely to be able to bid up their wages, says policymaker

The Bank of England policymaker Catherine Mann has said she backed a half-point cut in UK interest rates last week because she believes the downturn in the jobs market will make the inflation “hump” this year short-lived.

Mann surprised financial markets last week by switching from voting against the Bank’s last cut, in November, to supporting a half-point reduction.

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‘Stagflation’ fears as Bank of England cuts growth forecast and warns of price rises

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UK economy expected to grow by just 0.75% this year, in fresh blow to Rachel Reeves’s attempts to raise confidence

Rachel Reeves’s plans for growth suffered a double blow after the Bank of England halved its forecast for the year and warned households would face mounting pressure from rising prices.

In a downbeat assessment as it cut interest rates for a third time in six months, Threadneedle Street warned people would face a fresh squeeze on living standards from rising inflation even as the economy stalled.

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