Australian Interest Rates

You’ve probably heard bullish commentators argue that declining interest rates explain, and justify, the extraordinary price to earnings (PE) multiples being paid for...

Despite a 35% or so plunge in share markets earlier this year; on the back of the pandemic and rough patches in 2018, 2015 and 2011, well diversified Australian...

With interest rates heading to zero, keeping your money in the bank has become a poor way to increase – or even preserve – your wealth. A better strategy, I believe,...

Our attention turns locally this week, as the country begins take stock of the coronavirus impacts and look to the future for drivers of Australia’s favourite asset...

Before COVID-19 hit, Nucleus Wealth launched an Australian property calculator. The idea I wanted to illustrate is that house prices are very sensitive to interest...

The last 30-40 years has seen a dramatic shift down in interest rates for much of the developed world. For example, the ten-year government bond yields in Australia...

Over the past few weeks, the RBA has started to change its narrative, suggesting that while negative rates are extremely unlikely, they’re not off the table. They’ve...

Is the RBA too concerned with front end rates that are aimed at helping the banking sector at the expense of the taxpayer who, ultimately, will be picking up the...

There has been much debate about the short-term economic and investment impact of coronavirus – on economic activity, unemployment, interest rates, house prices,...

The Reserve Bank of Australia’s cash rate, once its crowning glory, is at risk of becoming obsolete as a sharp surge in liquidity has resulted in interbank overnight...

The RBA has been buying up big, purchasing around $36bn in government and semi-government bonds throughout March. But when is enough, enough and can these efforts...

At present, most of the developed world central banks use a monetary policy framework called inflation targeting. In a simplified view, central banks set a target for...

In response to the coronavirus epidemic, the RBA cut the cash rate on 19 March to 0.25% and announced a number of QE measures. In the long run, will the government’s...

Central banks have taken some significant steps against the impact of coronavirus recently, with the RBA having cut 25 points already and the Fed cutting 50 points...

Don't be fooled by the dividend yields that you might see for the major Australian banks. They are reflecting a rosy vision of the future that is far from certain, and...

On 3 March 2020, the RBA cut rates by 25 basis points to 0.50% in response to the coronavirus. But have they cut too early? And what happens if markets are hit with...

Everything going on is nuts. Greek bonds are yielding less that Australian bonds, QE is on the cards from the RBA and the S&P500 is trading on a lofty 18 times forward...

Welcome to 2020. The bulls still have strength in numbers, but an increasing number of bears are emerging from hibernation. Those who argue that benign market...

As news is emerging that Australian Treasurer, Josh Frydenberg, will soon deliver a balanced budget for the first time since the GFC, one needs to ask if this is even...

RBA Governor Lowe has detailed his preference for a possible RBA Quantitative Easing (QE) program after further possible RBA rates cuts. Lowe suggests ‘’if’’ the RBA...