The Reserve Bank of Australia is tipped to begin lowering the official interest rate as soon as next year as higher borrowing costs work to lower inflation and suppress economic growth.
Commonwealth Bank is tipping a cut in the cash rate by the RBA from a peak of 2.6 per cent starting in late 2023, and Westpac and ANZ expect a terminal rate above 3 per cent with cuts by mid-2024.
Households appear to be responding to rising interest rates. After several years of strong monthly deposits, the amount of money being saved has slowed dramatically since the first-rate rise in May.Household deposits increased by just $5 billion in May and June compared with $25 billion in the two preceding months. Whether this is a seasonal adjustment or more structural will become clearer in July and August when tax returns lob into people’s bank accounts.
“However, domestic issues, particularly labour shortages, are becoming more severe with wage cost and labour supply the two most pressing concerns for businesses.
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.
‘Learning lessons’: Manly players open to pride jersey in 2023
Read more »
Uber to give Australians option to summon EVs from 2023Uber will offer a new service in Australia early next year allowing riders to choose fully electric vehicles as the rideshare group pushes ahead with plans to reach net zero emissions globally by 2040.
Read more »
Inflation can turn negative in 2023Quarterly inflation could be going backwards by late next year as petrol prices fall and supply chain pressures ease, enabling the RBA to avoid being too aggressive on interest rate rises.
Read more »
LIV Golf unveils 14-event schedule with promotion and relegation for 2023LIV Golf has unveiled plans for a 14-tournament schedule in 2023, featuring 48 contracted players on 12 teams and a system of promotion and relegation
Read more »
The RBA is increasing interest rates to counter inflation – but it will also slow wages growthCombined with major price increases on essential items, the RBA’s policies will deliver a brutal whack to lower-income households
Read more »
Time to be ‘alert to risk of recession’: ex-RBA governorFormer Reserve Bank governor and now Macquarie chairman Glenn Stevens said central bankers face a difficult environment as they try to tame high inflation.
Read more »