Peter Martin, Crawford School of Public Policy, Australian National University
More than one million borrowers are set to come off ultra-low fixed mortgage rates this year and next, meaning the full effect of the ten rate rises to date is yet to be felt.
Reserve Bank of Australia governor Philip Lowe is unrepentant about the prospect of further interest-rate rises. In fact, he says there’s a risk the bank is not doing enough.
The Reserve Bank of Australia tips economic growth to slow, inflation to remain high, spending to stagnate, unemployment to increase and real wages to fall further.
Peter Martin, Crawford School of Public Policy, Australian National University
The Reserve Bank has signalled it will keep pushing up rates until it has reigned in inflation – even if this means weaker economic growth, with income per person barely growing for years to come.
Peter Martin, Crawford School of Public Policy, Australian National University
The Conversation’s 29-member panel expects very weak economic growth and recessions in much of the rest of the world, but there’s good news down the track for Australians’ buying power.
Interest rates are almost certain to rise again in February, after the latest Consumer Price Index figures showing inflation hitting a record high of 7.8% in 2022.
Peter Martin, Crawford School of Public Policy, Australian National University
The full effects of the eight consecutive increases in the Reserve Bank’s cash rate are yet to become apparent, and there are signs inflation is on the way down.
Peter Martin, Crawford School of Public Policy, Australian National University
Lowe and the Reserve Bank are pushing up interest rates at almost the fastest pace on record to get the economy back in balance. It’s tough. But it has been done before – and here’s how it worked.
Peter Martin, Crawford School of Public Policy, Australian National University
At the right moment, Australia’s Reserve Bank would be wise to stop taking its lead from the US – holding interest rates here steady, even if they’re still rising overseas.
How could a central bank even make a loss, when its job is printing money? The answer is that during the COVID crisis it turned traditional investment advice on its head – and here’s why.