Category Archives: Interest rates

Fear of US recession rattles global markets as tech shares fall

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Europe’s main indices all decline and Japanese equities suffer worst day since 2020 while gold hits fresh record

Stock markets in Europe, Asia and New York tumbled on Friday as fears of a US economic slump grew and technology shares were hit by underwhelming earnings.

Concerns that the US could be sliding towards a recession spurred a global sell-off, which accelerated after a poor employment report on Friday showed that the US jobs market was cooling fast, pushing up the unemployment rate.

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Relief for borrowers as UK interest rates cut but little sign big reductions to come

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Incremental cuts likely over two to three years with rates expected to stay well above pre-Covid levels of 0.75%

Borrowers will breathe a collective sigh of relief. The Bank of England has cut interest rates by a quarter point to 5% and major lenders are shaving their best-buy mortgage offers in response.

Those wanting to get on the housing ladder should find property slightly more affordable after the cut, which ends a year of ultra-high borrowing costs and is the first rate cut in more than four years.

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Bank of England cuts interest rates to 5% in first reduction since March 2020

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Committee voted by five votes to four in favour of cut as governor says inflationary pressures have eased enough

The Bank of England has cut interest rates for the first time since the start of the Covid pandemic, moving to ease the pressure on households after ratcheting up borrowing costs to combat the worst inflation shock in four decades.

In a finely balanced decision after holding borrowing costs at the highest level since the 2008 financial crisis for a year, the Bank’s monetary policy committee (MPC) voted by a narrow majority to cut its base rate by a quarter of a percentage point to 5%.

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Australia news live: Coalition claims Labor education reforms a ‘school funding war’; NZ bushwalker’s body recovered from Tasmania hiking trail

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Murray Watt says advice needed from administrators to determine government support amid administration

Murray Watt, the newly-appointed minister for workplace relations, also weighed in on the Rex Airlines administration on ABC RN just earlier.

In terms of equity stakes or other financial government support, we’ll make those decisions once the situation becomes clearer through the administrator.

This would only be activated if the company is unable to repay entitlements to any workers who are retrenched, and let’s hope it may not get to that.

But also, our department would be providing employment support to workers who do lose their job to ensure that they can get back into work as quickly as possible.

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Housing approvals fall to lowest level in 12 years despite Labor’s pledge of 1.2m new homes

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Approved dwellings drop 6.5% in June amid high interest rates and building costs as CoreLogic rues ‘dismal result’

New dwelling approvals in Australia have sunk to their lowest in 12 years, as developers battle high interest rates and rising labour and material costs.

For the year to June, 162,892 houses and apartments secured approval, down 8.5% on the previous year and the least since 2011-12, the Australian Bureau of Statistics reported on Tuesday.

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Soaring government debt could roil global financial markets, warns BIS head

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Agustín Carstens says world economy on course for ‘smooth landing’ after inflation but political turmoil poses risk

Rising government debt levels could disturb global financial markets, the head of the body that advises central banks said on Sunday before France’s high-stakes parliamentary elections.

Agustín Carstens, the general manager of the Bank for International Settlements (BIS), said the world economy was on course for a “smooth landing” from the inflation crisis, but he warned that policymakers, especially politicians, needed to be careful.

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RBA governor says inflation still above target; Matt Kean to retire from politics – as it happened

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Liberals criticise treatment of journalist by Chinese officials at press conference

Opposition foreign affairs spokesman Simon Birmingham has condemned the treatment of journalist Cheng Lei at federal parliament yesterday.

This was an entirely counterproductive and inappropriate act by Chinese officials that should have been called out by our prime minister and government officials.

It is a reminder that we have two very different systems, the Chinese system and the Australian system, different systems of government, of course as a democracy, different respect when it comes to media, to freedom of speech, but this visit is taking place in Australia.

It is concerning, I think a lot of this comes from so many Australians genuinely doing a tough at the moment, having to make really tough decisions, from telling their kids that they can no longer play basketball or be part of the scouts group because they can’t afford the … 500 bucks a year that costs, to other Australians who are deciding between going to see the GP or fulfilling a script and putting food on the table.

People are doing it tough and so when they hear politicians talk about these targets in the future … I think Peter Dutton use this to whip up fear.

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Australian banks to alert customers on interest rate moves under changes to get savers better deals

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Move comes after consumer watchdog found banks were using pricing strategies that were highly complex or took advantage of the tendency to set and forget

People will be alerted each time their interest rate moves and when promotional offers expire under a suite of changes aimed at prodding bank customers to snag a better deal.

The federal government plans to act on a number of recommendations from two Australian Competition and Consumer Commission reports that found bank customers could earn and save more if not for barriers stopping them switching to better offers.

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Australia’s unemployment rate dips to 4% as economy adds 40,000 new jobs

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Jobless rate eases as employers shrug off rising costs to keep adding to their workforces

Australia’s unemployment rate eased last month as employers shrugged off rising costs including higher interest bills to keep adding to their workforces.

The jobless rate was 4% in May, the Australian Bureau of Statistics said on Thursday. That was in line with economists’ predictions and was a slight drop from April’s 4.1%.

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Eurozone business activity grows as expected ECB interest rate cut looms

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A 25 percentage point cut to main lending rate is forecast amid growth in Germany, Italy and Spain

Business activity grew across the eurozone at the fastest rate in a year in May while inflation cooled, according to data that will be welcomed by the European Central Bank (ECB) in advance of expected interest rate cuts tomorrow.

The latest HCOB purchasing managers’ index (PMI) data, compiled by S&P Global, showed private sector output expanded in most economies covered by the euro currency after growth in Germany, Italy and Spain was only marginally offset by a downturn in France.

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European and Canadian central banks expected to cut interest rates this week

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New lower rates of 3.75% and 4.75% respectively are likely to be introduced this week after drops in inflation

Borrowers in the eurozone and in Canada are expected to get some relief from high interest rates this week.

After recent drops in inflation, the European Central Bank (ECB) and the Bank of Canada (BoC) are forecast to lower their benchmark rates in the coming days.

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MP urges colleagues not to use Gaza as ‘opportunity to gain votes’ – as it happened

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WA shooter’s daughter says police ‘ignored’ warnings

Social services minister Amanda Rishworth has been asked about the powerful statement Ariel Bombara released yesterday, claiming Western Australian police had “ignored” warnings from her and her mother that their lives were under threat.

By that point we felt completely helpless and I had to focus on getting mum to safety. I did everything I could to protect my mother, and when my father couldn’t find us he murdered her best friend and her best friend’s daughter.

Rents have surged in Australia’s capital cities, with only 5.9% of city overall rentals now costing less than $400 a week.

At the start of the pandemic, one in five house rentals in Sydney cost less than $400 a week – that figure is now one in 50.

In Melbourne, one in 25 house rentals now costs less than $400.

The national share of rentals available under $400 dropped by one third annually to just 10.4%.

ACT had the smallest share of properties listed to rent under $400 at 2.1%, followed by Sydney (3.8%) and Perth (5.6%).

Melbourne saw the largest annual decline in the share of houses listed for less than $400 a week, followed by Adelaide and Sydney.

In regional markets, only 16.3% per cent of houses were advertised for under $400 a week in April.

Regional WA (14.8%) had the smallest portion of homes listed to rent below $400 of the regions, followed by regional Queensland (15.8%) and regional NSW (21.5%).

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Big drop in UK inflation rate disguises more disappointing details

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Service sector inflation, monitored closely by Bank of England, barely budged in April

The annual inflation rate fell sharply in April. Prices are rising more slowly than at any time in almost three years. Inflation is lower in the UK than it is in the EU.

Even so, the latest bulletin on the cost of living from the Office for National Statistics was mildly disappointing. April’s inflation figure was always going to be good, with a sharp fall guaranteed by the fact the energy price increases of a year earlier were not repeated.

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UK inflation falls by less than expected to 2.3%, reducing chance of June rate cut

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Drop in April is smaller than forecast but level is still lowest in almost three years

UK inflation fell to 2.3% in April – its lowest level for almost three years – but the decline was smaller than expected, denting hopes of an early interest rate cut.

City analysts had forecast the annual increase in the cost of goods and services would fall to 2.1%, close to the Bank of England’s 2% target.

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Australia news live: Telstra announces 2,800 job cuts; mediation talks in Reynolds and Higgins defamation case

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Liberal senator, and former political staffer expected to attempt again to resolve a pair of high-profile defamation cases. Follow today’s news headlines live

A High Court decision in Britain to allow Julian Assange to appeal his extradition to the US is a “small win” for the WikiLeaks founder but he should be freed now, the union for Australia’s journalists says.

As AAP reports, the Media, Entertainment & Arts Alliance remains concerned there is no certainty an appeal will be successful, which would mean Assange could still be tried for espionage in the US.

Tonight’s decision by the High Court is a small win for Julian Assange and for the cause of media freedom worldwide.

MEAA welcomes the decision of the High Court, but we remain concerned that there is no guarantee of success.

We call on the Australian government to keep up the pressure on the US to drop the charges so Julian Assange can be reunited with his family.

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Australian home lenders accused of ignoring mortgage customers in financial distress

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Some borrowers have been abandoned in a cost-of-living crisis and lenders must meet their obligations, the regulator says

Major Australian lenders are not doing enough to support mortgage customers in financial hardship, and in some cases they are ignoring requests for assistance altogether, the corporate regulator has found.

In a major report to be released on Monday, the Australian Securities and Investments Commission (Asic) found that more than one-in-three customers dropped out of a hardship application, a process designed to vary repayments while a borrower gets back on their feet, because of unnecessary barriers.

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Jim Chalmers labels Peter Dutton’s budget reply an ‘unhinged’ and ‘nasty’ rant

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Opposition leader promised in speech on Thursday to restrict property investment by non-residents

The treasurer, Jim Chalmers, has criticised the opposition leader Peter Dutton’s budget reply speech as “unhinged” and lacking in economic credibility, as he set out around Australia to explain the government’s own economic plan.

With parliament now in recess for a week, Chalmers headed to Port Augusta in South Australia with the environment minister, Tanya Plibersek, and SA state and federal colleagues to promote the government’s renewable energy transition agenda, badged as Future Made in Australia.

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PM promises ‘Labor party budget through and through’ – as it happened

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More details on government’s plan to cap international student numbers

The government has released a little more information on its plan to cap international students in a bid to ease housing shortages and clamp down on sub-standard education providers and agents. It will introduce legislation next week which will:

Prevent education providers from owning education agent businesses.

Pause applications for registration from new international education providers and of new courses from existing providers for periods of up to 12 months.

Require new providers seeking registration to demonstrate a track record of quality education delivery to domestic students before they are allowed to recruit international students.

Cancel dormant provider registrations to prevent them being used as a market entry tool by unscrupulous actors.

Prevent providers under serious regulatory investigation from recruiting new international students.

Improve the sharing of data relating to education agents.

[The Coalition will announce its] energy policy not at the time of the media’s choosing or at a time of the government’s choosing but a time of the Coalition’s choosing.

But it will be very clear in advance of the next election the way we want to go about opening up a new energy source for Australia. That will deliver emissions free energy and lower energy prices by increasing the mix of types of energy over the long term.

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Jacob Rees-Mogg accuses Bank of England of ‘miserable incompetence’ over inflation

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MP criticises policies on interest rates and bond-selling as Tory rightwingers call for review of Bank’s independence

Jacob Rees-Mogg has accused the Bank of England of “miserable incompetence” over its failure to reduce inflation more quickly and its bond-selling strategy, as rightwing Tories prepare to renew their attacks on the Bank’s independence.

The former business secretary accused the Bank of damaging the economy with its interest rate decisions and costing the taxpayer tens of billions of pounds by selling off government debt too quickly in an attempt to reduce its balance sheet – a policy known as quantitative tightening (QT).

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Jim Chalmers flags cost of living help for job seekers in federal budget

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‘There is more than one way to help people who are on income support,’ treasurer says when suggesting rebates and concessions could be boosted

The federal government is poised to expand rebates and concessions available to job seekers in next week’s federal budget, which is also expected to increase rent assistance.

The treasurer, Jim Chalmers, has confirmed that Tuesday’s budget will not increase the jobseeker payment but suggested it would boost concessions linked to social security payments, among a suite of measures designed to offer cost-of-living relief without pushing up inflation.

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