Review · BBC Stocks
Key events 37m ago How would your mortgage change? 1h ago Chalmers says Australians bracing for 'difficult decision' 1h ago Welcome Patrick Commins ‘Sharper, longer slowdown’ predicted for Australian economy as fifth interest rate hike looms Australia’s economy is set for a “sharper, longer slowdown”, major bank economists say, as the Reserve Bank is forced to keep interest rates higher to rid the nation of persistent inflationary pressures. The RBA is widely expected to hit mortgage holders with a fifth rate hike on Tuesday, in a move that will push the cash rate to its highest since 2008 amid rising worries the economy could even be tipped into recession. Belinda Allen , the head of Australian economics at CBA, said the extended Middle East conflict, collapsing house prices and a more aggressive central bank would drive real GDP down to just 1% by the middle of next year, nearly half the previous estimate of 1.8%.
Growth through 2027 would be barely stronger at an estimated 1.1%, according to the updated projections. Read more here: How would your mortgage change? For someone with an average-sized new mortgage of $731,000, paying a typical rate of 6.2%, a 0.25 percentage point rate increase would add about $119 to their $4,596 monthly repayments.
Use our loan calculator to check how a rate rise may affect you: Tess Ikonomou NSW premier warns of risk of ‘stopping the economy dead’ The NSW premier, Chris Minns , rejected commentary from some economists that the RBA’s decision would be straightforward. double quotation mark I know they’ve got a just difficult decision to make. I accept that, but we’ve got to be careful that in their efforts to slow down the economy, they don’t stop it dead. This is an extra hit to a pay packet that many people haven’t budgeted for, are not ready for.
It’s going to have a massive impact on our economy. Minns said a rate hike would have a “disproportionate impact” on the state’s economy due to NSW’s high house prices. Chris Minns.
Photograph: Dean Lewins/AAP Tess Ikonomou Anthony Albanese defended his government’s record in the face of a likely rate hike. The prime minister is in Saint John’s, Antigua and Barbuda, for the Commonwealth heads of government meeting at the request of King Charles. He has faced some criticism for being out of the country during the decision. double quotation mark We work each and every day on cost of living.
What I recognise as well is that by engaging in the world, we can deal with our national security interests, but also make our economy stronger. That’s why we need to engage in the world. Anthony Albanese meets British PM Andy Burnham ahead of the Commonwealth heads of government meeting.
Photograph: Kin Cheung/Reuters Tess Ikonomou Chalmers flags more ‘savings’ in next federal budget Asked why Labor can’t guarantee it won’t find net savings in the mid-year budget update, Jim Chalmers told RN the government is undertaking that task this month ahead of December’s release. double quotation mark We are currently working our way through the spending pressures, the economic forecasts, and the savings options to come up with the best, most responsible budget update that we can. There have been savings in all eight of our budget updates so far. There’ll be savings in the ninth as well.
The powerful expenditure review committee met on Monday, and will convene again on Wednesday to discuss savings, Chalmers said. Jim Chalmers. Photograph: Lukas Coch/AAP Chalmers says Australians bracing for 'difficult decision' Tess Ikonomou The treasurer, Jim Chalmers , told ABC’s RN Australians are bracing for a “difficult decision” ahead of an expected rate hike.
Another rise would likely increase the cash rate to 4.85%, taking it to the highest level in 18 years. double quotation mark People are under substantial pressure already, and obviously, if rates go up today, that will make things much harder, especially when there are already a number of rate rises in the system and their full effect hasn’t been felt yet. Regardless of the decision that the Reserve Bank takes independently this afternoon, we know that there is more work to do to make the budget as tight as it can be. Welcome Welcome to Guardian Australia’s live coverage of the Reserve Bank’s Tuesday board meeting.
It is widely expected the central bank will hike interest rates by 0.25 percentage points today to 4.85% – the fifth rate hike this year, and the highest level in 18 years. Let’s begin.
Source: The Guardian
