RBA

A leading economist has issued a warning that the Reserve Bank of Australia (RBA) could be doing “too much too late” to curb rising inflation rates ahead of ...

we’re just part of the global phenomenon where inflation even though it is starting to tilt lower, isn’t falling fast enough.” “After last week’s Consumer Price Index (CPI) and … ANZ and Westpac both have forecast for the cash rate to peak in May once it reaches 3.85 per cent. Australia’s biggest four banks have also weighed in and most don’t expect a February rate hike to be the last. The RBA is holding its first meeting of the year later on Tuesday afternoon where they are widely expected to hike the interest rate by 25 basis points to bring the cash rate to 3.35 per cent. A leading economist has issued a warning that the Reserve Bank of Australia (RBA) could be doing “too much too late” to curb rising inflation rates ahead of their Tuesday meeting.

Multiple predictions are swirling ahead of the Reserve Bank of Australia's (RBA) first interest rate meeting of the year. This afternoon, the RBA board will ...

“Near-term fiscal restraint will help support monetary policy in holding back excess demand. Gareth Aird, head of Australian economics at the Commonwealth Bank of Australia (CBA), has raised the possibility of a double interest rate hike. Maja's career in journalism spans well over a decade across finance, business and politics. If so, it would be their fourth consecutive 25 bp hike and ninth back-to-back hike this cycle, which is their most aggressive in history,” said Matt Simpson. While many experts anticipate an increase, there is no consensus on the extent of the potential hike. “Markets should be aware of the risk that the RBA restores the cash rate to a conventional metric in February and announces an intention to pause.”

Renewed worries about the outlook for US rates kept investors on the defensive. Apple falls 2pc, Tesla rises 2.2pc. Newmont slides 4pc.

TD Securities also sees a 0.25pc increase: “...we view the bar to hiking by 50bps to be high even though underlying inflation came in hotter than market and RBA forecasts. Though Biden has yet to officially announce his reelection run, he has begun the year by using a sharper tone against Republicans at a series of campaign-style events. Some of the largest withdrawals last month came from funds managed by BlackRock, Invesco and Vanguard Group. However, if the RBA can’t forecast inflation back in the band even at that horizon, it would plant the risk for a cash rate peak towards 4 per cent. There may be pause guidance at this meeting but the hot inflation figures and China rebound narrative challenge whether the RBA should instead keep its options open.” Connect with Timothy on [[email protected]](mailto:[email protected]) NAB sees the cash rate increasing by 25bp in February and March to a peak of 3.60 per cent. [Chanticleer: How Newcrest’s CEO woes led to Newmont’s $24b bid](https://www.afr.com/chanticleer/how-newcrest-s-ceo-woes-led-to-newmont-s-24b-bid-20230206-p5ci8g) While Newmont gave birth to Newcrest 57 years ago, the ASX miner’s more recent management issues have played into the US gold mining giant’s hands. Scotiabank: “Markets are mostly priced for a quarter point. 22 of 25 surveyed economists also look for a 25bp hike, and markets have 22bp priced. It is scheduled to release its decision at 2.30pm AEDT. Australian shares are set for a muted open as investors await Tuesday’s policy decision by the Reserve Bank.

The AUD/JPY is displaying back-and-forth moves around 91.30 as investors are awaiting the interest rate decision by the Reserve Bank of Australia (RBA.

It also emerged as a key player in the crypto industry owing to its initiatives following the FTX collapse in November 2022. The BoJ conducted an intervention in the yen on instructions from the Finance Ministry. USD/JPY is sinking toward 132.00 in the Tokyo open as Japan's Finance Ministry confirmed a stealth intervention in the forex market. The author makes no representations as to the accuracy, completeness, or suitability of this information. The author has not received compensation for writing this article, other than from FXStreet. It also does not guarantee that this information is of a timely nature. Daily Pivot Point R3 Meanwhile, a virtual meeting between trade partners of Australia and China on Monday is broadly setting a positive tone for the Australian Dollar. Daily Pivot Point R2 Considering the much higher-than-expected inflation readings over the past two months, we have increased our peak RBA cash rate [forecast](https://www.fxstreet.com/rates-charts/forecast) to 4.1% from 3.6%, assuming that there are two further months of 25 bps hikes ahead. Also, the Australian inflationary pressures have not peaked yet, which gives a green signal to the continuation of policy tightening by the central bank. Signs of volatility contraction are visible in the cross ahead of RBA policy as investors will keenly focus on remarks over inflation projections.

This could see households with an average-sized home loan paying an extra $150 each month to service their mortgage.

[CBA is expecting interest rates to peak at 3.5%.](https://www.brokernews.com.au/news/breaking-news/rba-expected-to-lift-rates-by-another-0-25-on-tuesday-281869.aspx) Deutsche Bank economists, however, are predicting a 4.1% interest rate by August, with the hikes to occur in February, March, May, and August. [borrowers are facing as many as six more interest rate hikes](https://www.brokernews.com.au/news/breaking-news/history-suggests-more-cash-rate-hikes-ahead-281863.aspx), with most experts expecting a ninth-straight hike this afternoon. Rates were just 0.1% in May last year when the central bank started to raise rates in a bid to tame surging inflation, which hit a 32-year high of 7.8%, according to the latest December quarter inflation data. [CBA](/resources/tools/company/cba/281248/)’s head of economics, said there’s a one-in-four chance [RBA](/news/breaking-news/rba-decision-wont-freeze-heated-lender-competition-176067.aspx) would decide to hike by a hefty 0.4%, taking the cash rate to 3.5% – a move that would see households with an average-sized home loan paying an extra $150 each month to service their mortgage. In a market note, Aird said it was most likely that the central bank would lift the cash rate by 25 basis points to 3.35% but described a possible 40 basis point shift to 3.5% as “a non-trivial risk,” 9News reported. There’s a 25% chance that the Reserve Bank will deliver a super-sized interest rate hike today, a Commonwealth Bank economist has warned.

The Reserve Bank of Australia will make its first cash rate decision of 2023 on Tuesday, February 7.

Digital journalist for ACM's regional titles. Returning inflation to target requires a more sustainable balance between demand and supply," he said. Before this role, I was the digital specialist with ACM's Agricultural division and prior to that chief of staff at The Land, where I started as a journalist in 2006. "Australia has reached a stronger cyclical position than many other advanced economies, with limited scarring," the IMF report said. "From its strong ... The slowest increase in prices in a year has stoked hopes inflation has peaked but a rate rise to bring the cash rate to 3.35 per cent is

Sky News Business Reporter Ed Boyd says the RBA should provide an update on the property market when they meet this afternoon. “We should get some sort of ...

The Reserve Bank is expected to again raise interest rates today before a pause on the horizon. But what happens in the pause?

We will get to an official interest rate of 3.6% or 3.85% and then pause. On Tuesday, the Reserve Bank of Australia (RBA) raised the official interest rate to 3.35%, reaching a 10-year high. And if not, there’s likely to be only one or two more rate rises after this.

The Coalition is ramping up its attacks on the government's handling of cost-of-living pressures, Lidia Thorpe is leaving the Greens and alcohol bans have ...

“Responsible cost-of-living relief, dealing with workforce shortages and issues in supply chains, at the same time as we show spending restraint. Since the Reserve started lifting rates, the monthly repayments on a $750,000 mortgage will have climbed by almost $1400. The central bank began hiking rates in May last year, when the cash rate was a historic low of 0.1 per cent.

The Reserve Bank has lifted the official cash rate target by 0.25 basis points. Follow the latest news live. RBA interest rates: Reserve Bank lifts official ...

But it’s a bigger shame that we missed the opportunity to stop robodebt five years ago. We further learn there was a visual presentation this review provided to the former minister in mid-May 2017. The minister is interested in what we have to do now. We need a government that will get its policies right and doesn’t force up prices in the process. It’s difficult to have this conversation because the rest of the nation have been lied to for so long. (Perhaps because the RBA knows it will have to jam those rate rise brakes a bit harder to cull inflation.) I say that as a black woman in the political arena, people need to check themselves. It is also about self-governance, self-determination and having the right to set up our own structures which we have been able to do before colonisation. And I have been grateful for the support I had within the Greens at that time. And it will be a conversation that we need to have. And we have had, when we work with the Greens, we had that support as well. These two parties are working together but, I think, Labor in the federal election they have supporters that if they vote to them, if they get elected, they will give visa to people or have been waiting here…

Mortgage holders likely to feel immediate pain but RBA indicates further increases to come in attempt to bring inflation under control.

Still, the RBA is not expecting a major increase in the jobless rate. “The budgets of many home borrowers will be under considerable strain over the coming year.” “It will be some time, though, before inflation is back to target rates” of 2%-3% over time. Financial markets also priced in a higher RBA rate summit before it declines. The increase dented the Morrison government’s re-election hopes but further rises at every RBA board meeting since have posed new treasurer Jim Chalmers a monthly challenge to explain why debt repayment costs were rising yet again. In December, the rate was hovering near half-century lows of 3.5%, and the central bank now expects it to edge up to 3.75% by the year’s end and rise further to 4.5% by mid-2025. In a signal that the RBA sees the cash rate rising by at least another half percentage point, Lowe said “the Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary”. “The RBA is determined to avoid a prices-wages spiral, which would make their job more difficult in the year ahead,” Murphy said, noting the December quarter wage price index would be “keenly” assessed when it is released by the ABS on 22 February. While the forecast of a decline to 4.75% this year is unchanged from the RBA’s previous statement released in November, Lowe added that CPI would recede to “around 3% by mid-2025”, indicating the lengthy glide path ahead. “It is, however, moderating in response to lower energy prices, the resolution of supply-chain problems and the tightening of monetary policy,” Lowe said. The Reserve Bank at its first board meeting of 2023 on Tuesday raised its cash rate 25 basis points to 3.35%, its highest level in just over a decade. Australia’s central bank has slugged borrowers with another increase in interest rates, extending the record run of hikes to nine meetings in a row as it tries to cut inflation, and indicating there are “further increases” to come.

At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 3.35 per cent.

The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that. Another source of uncertainty is how the global economy responds to the large and rapid increase in interest rates around the world. The central forecast is for the unemployment rate to increase to 3¾ per cent by the end of this year and 4½ per cent by mid-2025. The Board recognises that monetary policy operates with a lag and that the full effect of the cumulative increase in interest rates is yet to be felt in mortgage payments. Wages growth is continuing to pick up from the low rates of recent years and a further pick-up is expected due to the tight labour market and higher inflation. Inflation is expected to decline this year due to both global factors and slower growth in domestic demand.