Australian Interest Rates

Australian’s love affair with debt – how big is the risk?

Shane Oliver
Shane Oliver AMP Capital

If Australia has an Achille’s heal it’s the high and still rising level of household debt that has gone hand in hand with the surge in house prices relative to incomes. Whereas several comparable countries have seen their household debt to income ratios pull back a bit since the Global... Show More

Join the conversation

Waiting for wages growth

Cameron Rae
Cameron Rae Laminar Capital & Easterly Asset Management

Higher wages growth in the United States seems to have caused the sell-off and subsequent sharp lift in volatility in global bond and share markets. Annual growth in in US average hourly earnings accelerated to 2.9% y-o-y moving in to territory that has presaged higher inflation in the past and... Show More

Can Australian homeowners handle higher rates?

Livewire Exclusive

The average variable home loan rate in Australia has fallen from 8.3% to 5.1% in the past ten years, enabling households to borrow more and drive house prices higher. Despite higher levels of household debt, Australians’ level of mortgage stress is quite low. But what if interest rates go up?... Show More

Join the conversation

Weak wages growth continues

Cameron Rae
Cameron Rae Laminar Capital & Easterly Asset Management

Each week we produce a topical piece on what economic factors are driving the markets in Australia. Our senior economist Stephen Roberts also produces a podcast where he discusses these topics in greater detail. You can listen to Steve's dulcet tones HERE. Show More

Yellen takes aim

Sam Ferraro
Sam Ferraro Evidente

A number of popular scapegoats emerged in the aftermath of the financial crisis: conflicted credit rating agencies, a corporate culture and regulatory environment that encouraged risk taking over risk management, lax lending standards, rapid growth in credit, and what some considered to be excessively loose monetary policy from the U.S.... Show More

fed yellen policy Australian Interest Rates

Daintree Capital Director & Portfolio Manager, Justin Tyler

CommSec
CommSec Online Stockbroker

In this short video we discuss the challenges facing investors as the interest rate cycle globally continues to normalise, over the medium term, transitioning higher from the ultra-low settings that prevail in most developed economies at present. Range of choices on offer for the average investor seeking to add fixed... Show More

interest rates rba Australian Interest Rates Daintree Capital

Economic Insights: Cash rate remains on hold in July

CommSec
CommSec Online Stockbroker

The Reserve Bank has left the cash rate on hold at 1.5% in July as widely expected. CommSec expects rates to stay on hold throughout the 2017/18 financial year. Show More

CommSec Financial Year Wrap

CommSec
CommSec Online Stockbroker

EOFY Series: The Australian sharemarket Show More

Investor Signposts: Reserve Bank Board meets; Top shelf indicators return

CommSec
CommSec Online Stockbroker

CommSec Chief Economist Craig James takes a look at the economic events scheduled for the week ahead, including RBA Board Meeting, Retail Sales and International Trade data. Show More

Desk Note - the case for holding US$ exposure - targeting A$ dropping to ~65c

Wentworth Securities
Wentworth Securities Wentworth Securities

It may be timely to enter the US$ trade. The A$ has been propped up by the Chinese stimulus from early 2016, which has seen an explosive recovery in commodity prices. Chinese growth is forecast to slow.If you look through the half yearly reports, the major producers have expressed concerns... Show More

rba audusd Australian Interest Rates

Is the Aussie economy back on track for growth?

Stephen Koukoulas
Stephen Koukoulas Market Economics Pty Ltd

The interest rate cutting cycle appears to be over. This is not because inflation is accelerating – on the contrary, inflation remains low and looks like staying low for some time. Rather, interest rates are on hold is because the RBA is looking at a range of indicators that are... Show More

australian economy Australian Interest Rates

2016 Macro predictions: Readers Vs Experts

Livewire Exclusive

At the end of 2015, Livewire ran a survey asking readers and contributors for predictions on specific macro events. With a few months left of the year, it’s time to check in on how everyone is performing. So far, Livewire readers have struck an impressive three out of four. With... Show More

An Outlook for 2016/17: Worldwide Currency War

Clime Asset Management
Clime Asset Management Funds Management & Stock Research

Currency wars, increased market uncertainty and pending foreign election outcomes may see an adoption of more unconventional economic monetary policy in Australia. We believe investors need to take a conservative approach to portfolio construction, with a greater spread of assets and heightened awareness of risk in the bond market. Show More

RBA cuts to record low as reporting season gets underway

George Boubouras
George Boubouras Contango Asset Management

On the first Tuesday in August, the RBA cut the official cash rate to a record low of 1.50%. Why did they do it? And are there any more rate cuts to come? The RBA decision was almost entirely due to weak inflation. Late in July, the ABS reported that... Show More

fed rba aud Longform Australian Interest Rates

RBA Cuts Interest Rates by 25bps! Positive for Equity markets.. Albeit priced in..

James Nicolaou
James Nicolaou Baillieu Holst Ltd

The Reserve Bank of Australia has cut the official cash rate to an unprecedented 1.5% to maintain downward pressure on the currency and spur sluggish inflation and business investment. As was forecast by most analysts, the board lowered the cash rate by 0.25 of a percentage point from 1.75% on... Show More

Join the conversation

Jakobsen: AUD could be at parity with USD within a year

Livewire News
Livewire News Livewire

Steen Jakobsen from Saxo Bank recently told the ABC that Australian rates are flattening out, and the next significant move will be to the upside. “We may see one more lowering of the rates, but that will be the low point. So that is the Australian side. The US dollar... Show More

politics aud us interest rates Australian Interest Rates

Get set for an August interest rate cut

Stephen Koukoulas
Stephen Koukoulas Market Economics Pty Ltd

Get set for a further interest rate cut at the August RBA Board Meeting. With the economy expanding at a moderate pace, at best, the unemployment rate appearing to edge up, and global economic conditions only fair, there's a solid case for a 25 point cut, to a record low... Show More

cpi macroeconomics Australian Interest Rates RBA Preview

Derivatives market implies 5 years of below-target inflation

Livewire News
Livewire News Livewire

Australian fixed-income investors are showing skepticism that the inflation rate will rise back to the central bank’s target range without more cuts to benchmark borrowing costs. While bond yields have rebounded this week as the odds of a British exit from the European Union have decreased, that shift has done little... Show More

inflation Australian Interest Rates

Is deflation here to stay?

Livewire Exclusive

The March quarter CPI figures seemed to catch the RBA off guard. Many market watchers didn’t fare much better. Six of the 11 industry groups recorded outright price falls for the quarter, and three of them fell into deflation over a 12-month period. There has been extensive debate as to... Show More

inflation the buy side brief Australian Interest Rates

The one factor that blindsided the RBA

Altair Asset Management

Producer prices are weak or falling – in much of Asia falling sharply. There are lumps and bumps in oil prices driving undulations in headline inflation rates around the world, but there has been and still is a powerful disinflationary force in play. In Australia, persistently low wages growth was... Show More

inflation the buy side brief Australian Interest Rates