Category Archives: Reserve Bank of Australia

Australia’s inflation rate hits 7.3%, the highest since 1990, heaping pressure on households

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Families and businesses feeling the pinch as soaring CPI ensures more interest rate rises to come

Australia’s inflation rate accelerated in the September quarter as energy prices soared, heaping pressure on households and businesses and ensuring more interest rate rises to come.

The consumer prices index (CPI) has risen 7.3% over the past year and increased by 1.8% in the July to September period, the Australian Bureau of Statistics said on Wednesday. Economists had predicted annual CPI would quicken to 7% from the 6.1% pace reported in the previous quarter.

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Sydney’s property prices dropped 10% this year, with $450 a day lost from average home

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Decline comes as RBA documents indicate values may sink as much as 20% nationally from their February peak by end of 2024

Sydney’s property prices have fallen by more than 10% since their mid-February peak, shedding almost $450 a day in value on an average home, and leading other major markets lower, CoreLogic said.

The 10.1% decline for home values in the harbour city so far comes as documents from the Reserve Bank of Australia indicate average property values may sink as much as 20% nationally from their recent highs by the end of 2024. That decline would be the steepest since the 1980s if realised.

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Handwritten notes, door-knocking, recipes: real estate agents turn ‘desperate’ across Australia

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Amid falling house prices and interest rate rises, agents are turning to increasingly frenzied measures to hunt for sellers

The first time Neha Samar received a handwritten note in her letterbox asking if she would be willing to sell her home, she threw it in the bin and forgot about it. The third time she received a similar note, it felt “creepy”.

Samar has lived in her Shepparton property, north-east of Melbourne, since 2018, but this is the first year real estate agents have come knocking.

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Banks raise interest rates in response to RBA – as it happened

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Australian dollar drops and shares bounce higher on reserve bank’s dovish move. This blog is now closed

Sexual violence rife on dating apps

Dating apps need to better protect their users after a study revealed high rates of sexual violence, stalking, assault and unwanted sharing of explicit images, AAP reports.

This is highly concerning given the significant and potentially long-term impacts associated with these victimisation experiences.

These impacts include poorer health and wellbeing, including overall life satisfaction, social isolation and lower self-esteem, as well as increased risk of re-victimisation.

Considering the long- and short-term implications for victim-survivors after experiencing these harmful behaviours, there is an obvious need to develop mechanisms for protecting users.

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Property prices dropped further in September and falls ‘could accelerate’ again with rate rise

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Investors and banks predict RBA will raise cash rate further on Tuesday, while rent increases begin to slow around Australia

Australia’s property prices fell another 1.4% in September as the cost of borrowing increased, and another interest rate rise is likely after Tuesday’s Reserve Bank meeting.

Last month’s drop in CoreLogic’s home value index was less than the 1.6% fall in August but the pace of declines could quicken again if the RBA’s key interest rate keeps rising, said Tim Lawless, the data group’s research director.

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BoM forecasts wetter-than-average summer for eastern states – as it happened

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Hearing that house prices are going down but looking around and seeing they are still astronomical?

Grogs explains why – yup, house prices are falling, but they are coming from eye-watering heights.

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RBA governor says at least two more interest rate rises needed to combat ‘scourge’ of inflation

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Philip Lowe has admitted ‘the magnitude of the pickup in inflation has come as a surprise to everyone’

The Reserve Bank will need to lift the official interest rate at least twice more to ensure the “scourge” of inflation is contained, with the pace and size of increases determined in part by how fast wages pick up, the bank’s governor, Philip Lowe, has warned.

In a speech on Thursday, Lowe admitted the pace of inflation had caught the RBA and other central banks flatfooted. They had no choice but to lift the cost of borrowing to stop an “inflation psychology” from taking hold.

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Federal Icac legislation to be introduced to parliament next week – as it happened

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Gallagher says Labor has not changed position on tax cuts

And on the stage three tax cuts, Katy Gallagher echoed the line the treasurer, Jim Chalmers, started last week and continued yesterday – which is effectively Labor playing dead on the $243bn cuts:

I have been asked this a number of times. You know, we haven’t changed our view on stage three. They don’t come in until 2024.

My sole focus at the moment is putting a budget together for October and what we can do in the short-term to relieve pressure on families. That is what I’m focused on everyday.

Well, the budget we inherited was heaving with a trillion dollars of Liberal party debt. We got deficits as far as the eye can see.

We got some programs that weren’t funded in an ongoing sense that clearly are programs that need ongoing funding.

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SES and Resilience NSW ‘failed’ to lead flood response, inquiry finds – as it happened

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New threatened species listings include south-eastern glossy black-cockatoo

Two Australian species that were badly affected by the 2019-20 black summer bushfires have been officially listed as threatened.

The damage caused by the black summer bushfires is still being felt today and can be seen reflected in these listings today.

The fires had an immense impact on our environment, from a small reptile found in the mountains to a bird that is at home on the coast. There is still a lot of work to do.

It seems as though these positions are being offered around almost like lolly bags to senior members of the New South Wales government rather than what they’re intended to be, which is senior positions funded by the taxpayer. We shouldn’t operate like that in New South Wales. We’re slowly but surely finding out the contours of what is an absolute scandal.

There’s many questions to be asked. At the end of the day we’re expected to believe of the 8 million people who live in New South Wales, John Barilaro was independently chosen to represent our interests. I think that ... stretches credibility.

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Australia’s official interest rates expected to rise by half-percentage point, economists say

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Experts predict RBA will lift cash rate from to 1.85%, marking a 175-basis point increase since May

Australia’s official interest rates are all but certain to be lifted on Tuesday with the expected half-percentage point increase marking the Reserve Bank’s sharpest tightening phase since 1994.

A survey by Bloomberg News found 28 of 30 respondents predict the RBA board will lift the cash rate from 1.35% to 1.85% at its monthly meeting. That move would mark a 175-basis point increase in the rate since it began hiking in May.

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Australian property prices tumble at rates not seen since GFC

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Interest rate rises lead to dwelling values falling for third month in a row with Sydney prices down 5.2% since January

Australia’s property prices are falling at rates comparable to the onset of the global financial crisis or the 1980s downturn as higher interest rates deflate demand. Sydney’s drop, though, is already more precipitous than those earlier eras.

In July alone, dwelling values fell 1.3% on average nationally, marking a third consecutive monthly decline according to CoreLogic, a property data firm. Five of the nation’s eight capitals reported falls, with Sydney down 2.2% and Melbourne retreating 1.5% while prices in Brisbane, Canberra and Hobart were also starting to slide.

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Despite Australia’s soaring inflation rate, some economists say the peak may be ‘coming into view’

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Analysis: Inflation optimists look to falling global supply chain pressures but spiking energy prices suggest we haven’t reached a plateau yet

Some economists have tipped that the inflation rate has started to plateau, even after the Australian consumer price index on Wednesday showed the fastest annual pace of inflation since 2001.

Australian prices rose 6.1% in the June quarter, the quickest pace in 21 years. Yet even in that dire news from the Australian Bureau of Statistics, some economists were able to spy a silver lining.

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Government ‘recognises concern’ over monkeypox with 44 cases recorded – as it happened

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Labor wants consensus between business and unions – Burke

Burke says “everything is on the table” including the potential for fixed enterprise bargaining. He also says that the government would like to seek consensus between business and union groups if it can. Asked specifically about a deal struck between the ACTU and the Business Council last year, Burke says he doesn’t know whether that is possible now but he’d be interested in exploring it.

If I can find agreements where there’s consensus I don’t know whether the consensus of that agreement of a couple of years ago still existed in identical form, but if a consensus like that turns up at the job summit you could work on the basis I will be inclined to grab it, because that did have safeguards around it to prevent workers from in fact going backwards.

When you don’t have an energy policy for a decade that’s inflationary. When you have a skills crisis and refuse to invest in skills, that’s inflationary. So in establishing the first bill will be dealing with in the Parliament will be jobs and Skills Australia, we have already had Chris Bowen taking action in terms of making sure we are dealing with the energy crisis. But none of this turns around straight away.

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Australia news live updates: Greens aim to ‘improve and pass’ Labor climate bill; Andrews rules out mask mandates as nation records 90 Covid deaths;

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No change in Operation Sovereign Borders policy

Clare O’Neil is asked about the desperate situation in Sri Lanka, where many people are trying to find a way out.

Operation Sovereign Borders is Australian government policy.

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Mortgage holders should brace for short-term pain as RBA signals steady interest rate rises to tackle inflation

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Philip Lowe says reserve bank looking for its ‘neutral rate’ which could see cash rate almost double in coming months

Mortgage holders should brace themselves for interest rate rises of at least another 1.15 percentage points before the end of the year as the Reserve Bank of Australia attempts to hose down inflation before it takes hold of the economy.

The RBA governor, Philip Lowe, said he believed inflation was on track to hit 7% by the end of 2022, with an unemployment rate of 3.5% but said the bank was confident inflation would return to the “target range” of between 2% and 3% in a “short while”.

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Mortgage holders could face large jump in repayments if interest rates increase by 3%, RBA says

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Deputy reserve bank governor, Michele Bullock, says most Australians are ‘well placed’ to absorb impact of rate rises

Up to 30% of mortgage holders could struggle to keep up with their home repayments if interest rates were to increase by 3%, according to the Reserve Bank of Australia, which says first-home owners, late entrants to the market and low-income loan holders are most at risk.

With the bulk of low fixed-rate loans due to expire in the next two years, about half of those coming into the new variable market will face increases in their repayments of at least 40%. For those whose fixed loans expire in the middle of next year, the reserve bank estimates a median increase of about $650 a month in repayments, or a 45% increase.

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Interest rate hikes may send about 200,000 more households into mortgage stress, says analyst

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Households struggling with loan repayments are ‘looking at a deep hole - incomes are not rising but costs are’

Many homeowners may be forced to tighten their belts after the Reserve Bank of Australia lifted the cash rate by half a percentage point, sending an estimated 200,000 households into mortgage stress.

On Tuesday, the RBA raised the official cash rate 50 basis points to 1.35% – the highest since May 2019.

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Senior ministers to retire before Victoria’s election – as it happened

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Housing market posts first monthly decline since September 2020; at least 52 Covid deaths recorded. This blog is now closed

Australian scientists celebrate world first

AAP is reporting that in a world first, Australian scientists have developed a device with “exquisite precision” that they say is a huge step towards a commercial quantum computer.

This is a remarkable piece of engineering. This experiment paves the way for larger and more complex quantum systems to be emulated in future.

It won’t be long before we can start to realise new materials that have never existed before.

All of this is just a fantasy because they don’t understand what actually happens at the bargaining table.

I think the Reserve Bank governor has weirdly changed his tune, he was the one who said so long as wages keep up with inflation and productivity, they are not inflationary.

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ASX: Australian stocks close almost 3.6% down after global sell-off on inflation fears

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Benchmark ASX200 index closes 246 points lower, after falling 360 points in the first 15 minutes of trading on Tuesday

Australian shares have joined a global retreat, ending almost 3.6% lower, as investors fear central banks will lift interest rates more aggressively, slashing economic growth and companies’ profits.

The benchmark ASX200 share index of the top 200 companies lost just over 5.2% within the first quarter an hour of trading, or more than 360 points. The losses, though, were pared by the end, with the market ending 246 points lower at 6,686. The Australian dollar also remained below 70 US cents.

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Reserve Bank hikes official interest rate by 50 basis points to 0.85% to curb inflation

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Decision exceeded predictions from economists while Westpac was the first of the big banks to pass on the rise in full to customers

The Reserve Bank has announced the biggest single rise in the cash rate in 22 years as Australia’s central bank tries to quash inflation before it gets out of control.

The RBA board at its regular monthly meeting lifted its cash rate target 50 basis points to 0.85%. Economists were again surprised by the size of the move, having been mostly split between predicting a 25 or 40 point increase, according to Bloomberg.

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