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

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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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TikTok could be banned in the United States

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TikTok in the firing line after Chinese balloon was shot down

 
China has hit back at the U.S. after officials shot down a suspected Chinese spy balloon off the coast of South Carolina.

Washington says it was being used to monitor strategic sites.

But Beijing rejects this – claiming the balloon was a civilian airship used to monitor the weather.

The incident is just the latest in a long line of diplomatic disputes between the two countries.

Now, TikTok could be banned in the U.S. in the wake of the incident.

Republicans are now pushing for Washington to distance itself from the Beijing-based app. #trending #featured

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Companies to pay extra for verified Twitter accounts

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Elon Musk has announced that companies and brands will have to pay $1,000 per month – plus an additional $50 per sub-account – to get verified check-marks on Twitter

The new pricing falls under the new Twitter Blue for Business service.

Within the next few months, only paying Twitter customers will have verified status.

Twitter has stacked on $12.5 billion in debt, and this move hopes to increase subscription revenue to meet Musk’s obligations.

Advertisers halted spending on Twitter after the takeover, but Twitter has since announced partnerships with two brand-safety vendors to win back marketers.

Musk also announced that Twitter would start sharing ad revenue with creators for “ads that appear in their reply threads”, but didn’t provide further detail.

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BMW to invest €800 million in Mexico

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BMW is set to invest €800 million in Mexico, to produce its next generation of high-voltage and fully electric batteries

 
The carmaker is looking to convert more than half of its sales into all-electric cars by 2030.

Construction will begin next year with production beginning in 2027.

The announcement follows several other major expansions from the automaker in recent months, including a $1.7 billion investment in the United States.

The move will add around 1,000 new jobs to its Mexico operations.

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