There is “still strength” in the price pressures across the Australian economy, the Reserve Bank’s chief economist Sarah Hunter has cautioned, after hotter-than-expected inflation figures prompted traders to slash their rate cut bets until the end of 2025. Annual headline inflation accelerated to 3.6 per cent in the 12 monthsContinue Reading
Inflation could return to the Reserve Bank’s target band by the end of 2024, Tuesday’s federal budget will show, a full year ahead of the Reserve Bank’s own forecasts which predict a resurgence in price pressures. In positive news for cash strapped households, Treasurer Jim Chalmers third budget will predictContinue Reading
The Reserve Bank has dramatically hiked its near-term inflation forecasts, showing progress is expected to stall as soaring costs at the fuel bowser and a still-tight jobs market cause a rebound in prices. According to updated quarterly forecasts, released by the Reserve Bank on Tuesday as it also unveiled itsContinue Reading
Interest rates risk going higher still, economists have warned, as stubborn inflationary pressures, rebounding economic growth, and continued tightness in the jobs market could force the Reserve Bank to inflict further pain on household borrowers. While the majority of economists still expect the RBA’s next move will be a cut,Continue Reading
Investors and economists have slashed their bets that the Reserve Bank will deliver a rate cut this year, after inflation rebounded in the March quarter. The consumer price index (CPI) rose 1 per cent in the first three months of 2024, the Australian Bureau of Statistics reported on Wednesday, upContinue Reading
Inflation held steady last month, buoying hopes that the Reserve Bank can move to cut interest rates this year. Consumer prices rose 3.4 per cent in February from a year earlier, the Australian Bureau of Statistics said on Wednesday, slightly below economists’ expectations of a 3.5 per cent increase. However,Continue Reading
A pivot from the Reserve Bank to scrap an explicit warning about further interest rate rises has the peak union body calling for the cash rate to be cut now. The central bank kept the cash rate on hold for a third straight meeting on Tuesday at 4.35 per cent,Continue Reading
A former Reserve Bank governor has slammed the government’s intention to remove a provision that allows the treasurer to override a decision from the central bank. The government has introduced legislation following last year’s Reserve Bank review to “modernise” the central bank, including a provision to remove section 11 ofContinue Reading
More pain for mortgage holders could be on the way after the Reserve Bank of Australia warned it would be some time before the board would have “sufficient confidence” inflation will ease within a reasonable time frame. The RBA on Tuesday released the minutes of its February meeting where itContinue Reading
The Reserve Bank has spared borrowers fresh pain, but households holding out for rate cuts have had their hopes dashed with relief still expected to be months away. In a statement after the decision was announced at 2.30pm on Tuesday, the RBA said “a further increase in interest rates cannotContinue Reading