RBA interest rates: Can Australia compete in the new post-inflation world?

Is the next change going to be a cut or a raise? Is there going to be a cut this year? If so, will it be one or two cuts?

Before the pandemic we were in an era of “secular stagnation”. Thanks to an ageing population and the rise of mega investors such as sovereign wealth funds and deca-billionaires, there was a large pool of savings chasing comparatively few productive investment opportunities. The great companies of the modern era had essentially been built with good ideas and a few laptops, not masses of financial capital like the great companies of the early 20th century.

By historical standards that is still pretty low. From the mid-1990s until the 2008 financial crisis official rates hovered between about 5 and 7 per cent. So, we are likely to have an era of historically cheap money, but very far away from the almost “free money” that we had for the decade before the end of the coronavirus pandemic.Given that we have a cash rate of 4.35 per cent at present, all the energy being consumed inof 25 basis points seems rather quaint.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

RBA interest rates: Rate cut hopes grow after RBA softens rhetoricAustralian bond yields and the $A retreated after investors seized on subtle changes to the Reserve Bank’s monetary statement, declaring a subtle “dovish” shift.
Source: FinancialReview - 🏆 2. / 90 Read more »

Australia house prices: The Westpac data that should make the RBA wary of cutting interest ratesAustralia is a nation obsessed with house prices, and with 60 per cent of people planning to buy in the next five years, the central bank is unlikely to be immune from that.
Source: FinancialReview - 🏆 2. / 90 Read more »

RBA interest rates: National Australia Bank’s Rodrigo Catril says ‘we still have an inflationary problem’Rodrigo Catril at National Australia Bank is confident the RBA will lower the cash rate this year, but the job market needs to weaken first.
Source: FinancialReview - 🏆 2. / 90 Read more »

RBA interest rates: Reserve Bank of Australia will struggle to cut rates this year, survey showsThe RBA is expected to be the last major central bank to start cutting interest rates and economists predict the cash rate will remain on hold at least until November.
Source: FinancialReview - 🏆 2. / 90 Read more »

Cost of living Australia: More borrowers to feel squeeze: RBAThe bank says households and the financial system are coping well but more borrowers than first forecast will run out of savings by the end of 2025 if interest rates stay elevated for longer than expected.
Source: FinancialReview - 🏆 2. / 90 Read more »