Australian Interest Rates

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...

Treasurer Josh Frydenberg announced Monday an ACCC investigation into the banks not passing on interest rate cuts. I think the investigation will make a nice addition...

An interesting session locally with the RBA front and centre cutting rates as expected to 0.75% at 2.30pm this afternoon, the lowest level in history and enough to...

Deciding on where to allocate capital has seldom been much harder, as we traverse global financial markets replete with conflicting messages, political uncertainty,...

Investors have it all wrong. In a world of zero or negative interest rates, investors are being forced to chase return. The baby boomer generation (retirees) are all...

What is compounding? Albert Einstein is reported as saying that compound interest is “the eighth wonder of the world. He who understands it, earns it; he who doesn’t,...

There’s an increasing frequency of articles I have read suggesting that low rates are now a permanent feature of markets, as is the likelihood of central banks...

Central banks (including ours) are faced with two choices: “rescue” the world from its economic slowdown; or stand aside and let the inevitable correction take place. ...

Australian housing prices have fallen 8.2% nationally from their peak in 2017, with declines of 10%-15% in the two largest cities, Sydney and Melbourne, according to...

As expected the Reserve Bank of Australia (RBA) cut interest rates by 25 basis points on Tuesday, taking the cash rate to 1.25%. We take a look at the economic...

The Reserve Bank of Australia opted to leave interest rates on hold. But with key parts of the economy in decline, it may be just a matter of time before it has to cut...

Week in Review The escalation in US-China trade tensions continued to dominate global market sentiment last week, with bond yields dropping lower and equities prices...

Surprisingly weak Australian inflation has led to expectations the Reserve Bank will soon cut rates. But what’s driving low inflation? Is it really that bad? Why not...

In the AFR today I reveal that very senior industry participants believe the RBA and APRA are considering a targeted alternative to a cut to the official cash rate,...

After 27 years, the Australian economy is finally facing a recession. Neither monetary nor fiscal policy look set to save it and yet again we appear highly dependent...