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Australia’s Reserve Bank raises interest rates, how much extra will you be paying?



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:

  1. mortgage distress expected to increase
  2. commodity prices expected to soften as global economy slows down
  3. 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.

Costa is a news producer at ticker NEWS. He has previously worked as a regional journalist at the Southern Highlands Express newspaper. He also has several years' experience in the fire and emergency services sector, where he has worked with researchers, policymakers and local communities. He has also worked at the Seven Network during their Olympic Games coverage and in the ABC Melbourne newsroom. He also holds a Bachelor of Arts (Professional), with expertise in journalism, politics and international relations. His other interests include colonial legacies in the Pacific, counter-terrorism, aviation and travel.

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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.

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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

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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

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