The RBA hikes rates again with more to go – but falling confidence and home prices will limit RBA tightening | AMP Capital

The RBA hikes rates again with more to go – but falling confidence and home prices will limit RBA tightening Key points The RBA has hiked the cash rate again – by 0.5% taking it to 0.85% and continues to signal more rate hikes ahead. We expect the cash rate to rise to 1.5-2% by year-end and to peak at 2-2.5% by mid next year. Greater sensitivity to higher interest rates will cap how much …

The RBA starts raising rates – how far and how fast? And what does it mean for investors? | AMP Capital

The RBA starts raising rates – how far and how fast? And what does it mean for investors? Key points The RBA has hiked the cash rate by 0.25% taking it to 0.35% and signalling more rate hikes ahead. We expect the cash rate to rise to 1.5% by year-end and to 2% by mid next year. But the RBA will only raise rates as far as necessary to cool inflation and high household debt …

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 …

Central banks – including the RBA and Fed – gradually removing monetary stimulus is more good news than bad | AMP Capital

Central banks – including the RBA and Fed – gradually removing monetary stimulus is more good news than bad Key Points The march of central banks towards removing monetary stimulus is continuing with the RBA bringing forward its guidance regarding the first rate hike and the Fed set to commence tapering. We expect both to start raising rates later next year. The shift towards monetary tightening signals slower more constrained share market returns – but …

Making the most of record low interest rates

Making the most of record low interest rates The Reserve Bank of Australia (RBA) took the cash rate to a record low of 1% in July, bringing mortgage rates to their lowest level in more than half a century. However, the low cash rate also means your money in the bank could be earning less interest. Why did the RBA cut rates? Rate cuts are a way for the RBA to help stimulate the economy. …

Six forces driving Australian equity portfolio returns

Six forces driving Australian equity portfolio returns We are now in the late stage of the business cycle when a range of risks and opportunities are being thrown up at Australian equity investors. These reflect changes in fast-moving global markets, domestic policy choices and the evolving priorities of local businesses. These changes will create exciting opportunities for some Australian companies but throw up challenges for others. 1. The global economy is becoming more volatile The …

Reserve Bank economic snapshots

Reserve Bank economic snapshots Download PDF links:-   Key Economic Indicators  Composition of the Australian Economy Equity & Diversity Financial Stability RBA Annual Report Payments System Board Annual Report How Australians Pay – Consumer Payments Survey     Source RBA Website You may also like Disclaimer DisclaimerFinancialPartners (Tas) Pty Ltd make no representations about the content and suitability of this information for any purpose. It … How can we help? Take control of your super How …

Should the RBA raise rates to prepare households for higher global rates?

Should the RBA raise rates to prepare households for higher global rates? Key Points The RBA should avoid calls to raise interest rates prematurely just to prepare households for higher global rates. Such a move would be Iike shooting yourself in the foot in order to practice going to the hospital.. Nor should the RBA mess with the inflation target that has served Australia well. We don’t see it doing either and continue to see …

Latest RBA Media Releases

Latest RBA Media Releases The Reserve Bank of Australia conducts monetary policy, works to maintain a strong financial system and issues the nation’s banknotes. Neither FinancialPartners (Tas) Pty Ltd nor AMP Financial Planning Pty Ltd is endorsing these external links, they are provided for easy access to the latest Financial Information. See our Disclaimer page for full information. You may also like Informed Market Updates & Insights ARCHIVES  Market Updates2019December 2019November 2019October 2019September 2019August 2019July …