rates – Page 2

Jobs and inflation to trigger higher rates? | AMP Capital

Jobs and inflation to trigger higher rates? The labour market is strong, with higher employment levels than pre-COVID, a record participation rate and a low unemployment rate of four per cent. Alongside increasing inflation, that’s enough trigger a rise in the official cash rate by the Reserve Bank of Australia (RBA), most likely when the RBA board meets on Tuesday (3 May). The pace of Australian jobs growth slowed last month, but that was …

FinancialPartners 02/05/2022 02/05/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / FP - Financial Planning Bank / Employment / higher / Inflation / Interest / jobs / lift / Market / pressure / Putting / rates / Reserve / strong / trigger / very

Australian housing slowdown Q&A – What impact will higher interest rates have? How far will prices fall? | AMP Capital

Australian housing slowdown Q&A – What impact will higher interest rates have? How far will prices fall? Key Points Australian home prices are likely to fall by 10% to 15% into 2024 primarily as a result of poor affordability and rising interest rates. The negative wealth effect from falling home prices should help limit how much the RBA raises rates. A change in Government is unlikely to significantly affect the outlook for home prices, but …

FinancialPartners 12/04/2022 12/04/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning About / always / Australia / Australian / fall / far / higher / house / housing / How / impact / incite / Interest / prices / Q&A / rates / recently / slowdown / surging / Until / What / Will

The US Federal Reserve starts raising interest rates – implications for Australia and investors | AMP Capital

The US Federal Reserve starts raising interest rates – implications for Australia and investors Key Points The Fed has finally joined other central banks in raising interest rates, taking the Fed Funds rate from a range of 0-0.25% to 0.25-0.5%. This was well flagged and reflects the tight US labour market and high inflation. The Fed flagged another six rate hikes this year and the start of quantitative tightening soon. First rate hikes in a …

FinancialPartners 19/03/2022 18/03/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning (much / after / anticipation / Australia / Federal / funds / implications / Interest / investors / raised / raising / rates / Reserve / starts / target

US faces stiff headwinds in 2022 | AMP Capital

US faces stiff headwinds in 2022 What happens to interest rates locally and globally is always important for investors, but particularly so at turning points in the economy. And notwithstanding the recent Omicron outbreak, the world’s most influential central bank, the US Federal Reserve, looks likely to lift interest rates as early as March. It would be the first increase in more than three years and marks a significant turning point in the global economic …

FinancialPartners 22/02/2022 22/02/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning 2022 / always / faces / happens / headwinds / Important / Interest / investors / particularly / points / rates / stiff / turning / US / What

Why Australian interest rates are likely to rise and when

Why Australian interest rates are likely to rise and when Senior economist Diana Mousina answers our questions on potential interest rate changes and what it could mean for Aussie households. Why have interest rates been so low for so long? The main reason interest rates have been kept so low is the Reserve Bank of Australia undershooting on its inflation target of 2-3%. We haven’t seen underlying or core inflation within that band sustainably since …

FinancialPartners 22/02/2022 20/02/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning About / Australian / Diana / Economist / Interest / Likely / Mousina / possible / rate / rates / rise / Senior / talks / What / When / Why

The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August | AMP Capital

The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August Key Points The RBA will end quantitative easing this month. While it now sees unemployment falling below 4% and higher inflation it is prepared to be “patient” for now. We expect rate hikes to commence in August. Ultimately, we see the cash rate rising to around 1.5 to 2% in the years ahead but it’s …

FinancialPartners 02/02/2022 02/02/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning August / Banks / Bond / but / buying / central / ends / expect / first / Have / hike / Interest / last / months / over / patient / raised / rate / rates / RBA / remains / several

COVID relief continues for retirees

COVID relief continues for retirees The Australian Government has extended measures brought in to help retirees through the COVID-19 crisis. Lower minimum income rate… If you hold an account-based pension or similar product, you need to withdraw a certain amount each financial year – this is called your minimum income amount. The Government reduced this amount by 50% during the last year. The lower rate has now been extended until 30 June 2022 so Australian …

FinancialPartners 02/08/2021 29/07/2021 Blog / E - Economics / E - Insights Papers / FP - Financial Planning / FP - Retirement AMP_AU / Australian / Author Produced / continues / COVID / deeming / drawdown / extended / for / government / lower / rates / relief / retirees / retirees Original

RBA holds – but more stimulus likely as Victorian lockdown to knock at least $12bn from national GDP | AMP Capital

RBA holds – but more stimulus likely as Victorian lockdown to knock at least $12bn from national GDP Key points Victoria’s tightening lockdown could knock at least $12bn off the Victorian and national economy and delay the return to positive Australian GDP growth to the December quarter. The further hit to the economy and likely additional upwards pressure on unemployment is increasing pressure for more policy stimulus. This is likely to see the federal budget …

FinancialPartners 05/08/2020 05/08/2020 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning again / expected / fifth / hold / Interest / left / Month\ / rates / row Original / widely

Magic money tree – QE & money printing and their part in the coronavirus economic rescue | AMP Capital

So why do quantitative easing? Normally central banks implement monetary policy by changing interest rates. But when interest rates have already fallen to zero, in order to support the economy central banks have been turning to boosting the quantity of money in the economy. Hence quantitative easing. The current expansion in quantitative easing (and its adoption in Australia) reflects: A need to ensure that short term money markets continue to function – as lenders became …

FinancialPartners 16/04/2020 16/04/2020 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning Banks / central / changing / easing Normally / implement / Interest / Monetary / policy / quantitative / rates

The threat to Australian house prices from Coronavirus | AMP Capital

The threat to Australian house prices from Coronavirus Key points The Australian housing market is at risk from the coronavirus recession Australia has now entered. A relatively short recession that sees unemployment rise to around 7.5% would likely only set prices back around 5% or so after which prices would bounce back. But a deeper recession with say 10% unemployment risks tripping up the underlying vulnerability of the housing market around high prices and high …