The Reserve Bank of Australia has handed down an eighth-straight interest rate hike
Australia’s central bank has lifted the cash rate by 25 basis points to 3.10 per cent.
The rise makes it Australia’s highest official interest rate in a decade.
It is expected to add around $75 a month to a home loan of $500,000 over a 25 year period.
The Reserve Bank’s governor Dr Philip Lowe, said the board will increase rates even further but it is “not an a pre-set course”.
“It is closely monitoring the global economy, household spending and wage and price-setting behaviour,” he explained.
Australia previously had an interest rate above 3 per cent in 2012.
Associate Professor Konark Saxena is from the School of Banking and Finance at UNSW Business School.
He said there are three reasons, which could explain the Reserve Bank’s decision:
- mortgage distress expected to increase
- commodity prices expected to soften as global economy slows down
- wages are not rising to offset inflation.
Dr Lowe said the “full effect of the increase in interest rates is yet to be felt in mortgage payments”.
Despite the lead up to Christmas, he explained “household spending is expected to slow over the period ahead, although the timing and extent of this slowdown is uncertain”.
The Reserve Bank remains committed to managing inflation without a 2023 recession.
“The path to achieving the needed decline in inflation and achieving a soft landing for the economy remains a narrow one,” he said.
Xi Jinping is taking over China’s sharemarket
China’s economy sees President Xi Jinping asserting control over its sharemarket, a move raising eyebrows globally.
Xi’s government has unveiled a series of measures aimed at consolidating authority over the country’s stock market, signalling a desire for greater economic stability and control.
The reforms include stricter regulations for listing on Chinese stock exchanges, with companies needing to meet more stringent criteria to go public.
Additionally, the government is increasing its oversight of foreign listings by Chinese firms, a move seen as an attempt to prevent capital flight.
Investors worry as Tesla misses targets
Tesla reported lower-than-expected quarterly deliveries, sending its shares into a downward spiral.
The EV giant’s stock tumbled as investors expressed concerns over the company’s ability to meet its ambitious growth targets.
In the third quarter of this year, Tesla delivered a total of 220,500 vehicles, missing Wall Street’s estimates.
This disappointing performance raised doubts about the company’s ability to keep up with the soaring demand for its EVs, especially as competitors continue to enter the market. #featured
Is the housing market surge a bubble waiting to burst?
The housing market has witnessed a remarkable surge in home sales, driving property prices to unprecedented highs.
Despite the ongoing economic challenges, the real estate sector appears to be thriving, leaving experts and homeowners both astonished and hopeful.
Over the past year, the real estate landscape has been anything but predictable.
But the surge in demand has been met with a limited supply of available homes.
Builders have struggled to keep pace with the soaring demand, making the situation worse. #featured
Key investor interests when evaluating a startup
Southern Hemisphere’s largest gaming event
Australia’s power network is facing a terrible summer
Crypto.com accidentally transfers $10.5m to woman instead of $100
What is happening between SHIB and Vitalik? | TICKER VIEWS
Russia has cancelled itself. But the world should beware of poking the Russian bear￼
Money2 days ago
Warren Buffett warns of commercial real estate market crisis
Insight5 days ago
Revolutionising property ownership with property syndication
News5 days ago
Elon Musk on Philadelphia looting: ‘America resembles the Joker’
News4 days ago
U.S. alleges China’s worldwide media influence campaign
News3 days ago
Andrew Tate granted partial travel freedom in Romania
News5 days ago
Cybersecurity experts on the best ways to protect your business
Tech1 day ago
Why isn’t there an EV for all?
Money3 days ago
Why the U.S. is back to panicking about the debt ceiling