Banks are being urged to deliver the nation’s army of savers an increase in their interest rates after the Reserve Bank again tightened monetary policy with the promise of more to come
Banks are being urged to deliver the nation’s army of savers an increase in their interest rates to help offset some of the pain facing borrowers after the Reserve Bank again tightened monetary policy with the promise of more to come.
“Our economy is growing, and our challenges are growing too, but I’m confident that we can deal with them,” he said.Chalmers said he had spoken to the heads of Australian banks about passing the interest rates on to savers who have faced record-low returns for several years. While about 34 per cent of households have a mortgage, more than three quarters have savings.
“Today’s increase in interest rates is a further step in the withdrawal of the extraordinary monetary support that was put in place to help insure the Australian economy against the worst possible effects of the pandemic,” he said in a statement. Jarden chief economist Carlos Cacho said if the inflation data is surprisingly high there was a risk the RBA could raise rates by 0.75 percentage points in August, but an increase of 0.5 percentage points was more likely as the RBA works to tame inflation.Commonwealth Bank’s head of Australian economics, Gareth Aird, expects the next inflation data to be strong, despite the three consecutive rate hikes.
At the same time, households will face even higher costs at the supermarket, Chalmers said, as flooding affects key parts of NSW.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX to open steady, markets await Reserve Bank's expected rate hikeThe Australian share market is likely to start its day flat as investors await the Reserve Bank's interest rate hike, which is likely be a double-sized increase of 0.5 percentage points, according to market pricing.
Read more »
Reserve Bank lifts official cash rate to 1.35 per cent as homeowners brace for interest rate hikesIt is the third consecutive increase of the cash rate after the RBA lifted it by 50 basis points in June - the highest rise since February 2002. Read more here:
Read more »
ASX jumps as Wall Street rallies, the Reserve Bank rate hike loomsAustralian shares rise sharply in early trade as investors wait for another rate hike by the Reserve Bank on Tuesday.
Read more »
Allan plans to pass on the interest rate hikes to his tenant. Here's whyTeacher Allan Qi has a unique perspective when it comes to the property market. He is both a landlord and a tenant and is increasingly worried about the increase in interest rates.
Read more »
Higher interest rates may not slow inflation, and central banks are partly to blame | Satyajit DasThe Reserve Bank of Australia’s decision to raise the cash rate may backfire and cause economic instability
Read more »
Interest rates pushed up as Reserve Bank targets high inflationThe Reserve Bank has lifted interest rates amid more signs of the inflationary pressures hitting parts of the economy.
Read more »