BANKS AND BANKING

Chalmers flags budget cuts to fight inflation as interest rates hit 4.85 per cent

roymorgansocial Leave a comment

Original article by Shane Wright, Millie Muroi
The Sydney Morning Herald – Page: Online : 4-Nov-26

The Reserve Bank of Australia’s decision to increase the cash rate to an 18-year high of 4.85 per cent was not unanimous; three members of the nine-person monetary policy board voted to keep interest rates on hold. RBA governor Michele Bullock said that although Australia is not yet in a recession, it will feel that way to many people as they cope with falling real wages, higher inflation and higher mortgage interest rates. Meanwhile, Treasurer Jim Chalmers says the federal government’s budgets have not been a primary contributor to inflation, although he adds that Labor intends to play a "helpful roll" in curbing inflation. The government’s expenditure review committee met earlier this week, amid expectations that next month’s mid-year budget update will include spending cuts.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Economic sadism if RBA hikes: union

roymorgansocial Leave a comment

Original article by Greg Brown, Matthew Cranston
The Australian – Page: 1 & 4 : 28-Oct-26

Quarterly inflation data to be released today is likely to be a key factor in the Reserve Bank of Australia’s decision on interest rates next week. The general consensus of economists is that the RBA’s preferred measure of underlying inflation rose by one per cent in the September quarter and 3.6 per cent in the year to September; the headline inflation rate is in turn forecast to have risen by 0.7 per cent in the quarter, with an annual rate of 4.2 per cent. The Health Services Union’s national secretary Dustin Halse contends that the cash rate should be left on hold. He says interest rates are a "blunt instrument" and the RBA has "misdiagnosed" the causes of inflation.

CORPORATES
RESERVE BANK OF AUSTRALIA, HEALTH SERVICES UNION OF AUSTRALIA

Bullock rebuffs Labor on rates

roymorgansocial Leave a comment

Original article by Michael Read
The Australian Financial Review – Page: 1 & 6 : 30-Sep-26

Reserve Bank of Australia governor Michele Bullock has reiterated that "domestic capacity pressures" have been the key driver of the inflation rate, rather than the Iran war. She notes that while the conflict in the Middle East has "made things much worse", there was already excess demand in the economy and the RBA had started increasing the cash rate before the war began. Treasurer Jim Chalmers has persistently claimed that the war has been the primary source of Australia’s inflation challenge, rather than government spending. Bullock has warned that the RBA may need to follow up yesterday’s increase in the cash rate with another one if it is to prevent high inflation from becoming embedded across the economy. Financial markets have fully priced in a rise in the cash rate by February 2027.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

RBA flags need for 5pc jobless rate

roymorgansocial Leave a comment

Original article by Grace Lagan
The Australian Financial Review – Page: 1 & 4 : 23-Sep-26

Australia’s official unemployment rate is currently 4.5 per cent, but Reserve Bank governor Michele Bullock says the central bank still considers the labour market to be "tight". Bullock has expressed her view that an unemployment rate of between 4.5 per cent and five per cent will "probably take enough heat out of the labour market" to ease pressure on inflation. Based on the latest jobs data, an unemployment rate of five per cent would mean that about 83,000 additional people would have to be out of work if the size of the labour force remains the same. Meanwhile, with the RBA’s monetary policy board widely tipped to increase the cash rate next week, Bullock has warned that the central bank’s focus must be on keeping inflation expectations in check.

CORPORATES
RESERVE BANK OF AUSTRALIA

Bullock rings alarm on living standards

roymorgansocial Leave a comment

Original article by Michael Read
The Australian Financial Review – Page: 3 : 29-Jul-26

Reserve Bank of Australia governor Michele Bullock has warned that slowing productivity growth is making the domestic economy more vulnerable to global shocks. She also stated that the nation’s living standards will continue to stagnate unless the issue of productivity is addressed. Bullock also said the RBA will be open to further interest rate rises if this is deemed necessary to achieve its mandate of keeping the unemployment rate as low as sustainably possible while returning inflation to its target range of 2-3 per cent. Inflation data for the June quarter will be released today, and could determine whether there is another official interest rate rise in August.

CORPORATES
RESERVE BANK OF AUSTRALIA

Rate rise cycle not over yet: Bullock

roymorgansocial Leave a comment

Original article by Matthew Cranston, Jack Quail
The Australian – Page: 1 & 5 : 17-Jun-26

Treasurer Jim Chalmers has welcomed the Reserve Bank of Australia’s decision to leave the cash rate on hold at 4.35 per cent. Chalmers has attributed the monetary policy board’s unanimous decision to factors such as the federal government’s "responsible" budget and the US-Iran peace deal. However, RBA governor Michele Bullock has not ruled out further interest rate rises, noting that inflation remains high and the government’s budget tax reforms have resulted in increased uncertainty across the economy. Bullock adds that the RBA expects economic growth to slow but it is not forecasting a recession.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Handouts row: Take a hike, says Reserve

roymorgansocial Leave a comment

Original article by Matthew Cranston, Thomas Henry
The Australian – Page: 1 & 5 : 6-May-26

Treasurer Jim Chalmers says the Reserve Bank of Australia’s decision to increase the cash rate to 4.35 per cent yesterday will add to the pressure that families and businesses are already facing. He adds that the federal governments intends to play a helpful rather than harmful role in the fight against inflation. However, RBA governor Michele Bullock has cautioned against giving households more money in next week’s budget, arguing that this would make it harder for the central bank to bring inflation under control. AMP’s chief economist Shane Oliver says the government should reduce public spending in the budget to help alleviate underlying inflation pressures, while also introducing reforms aimed at boosting productivity and capacity in the economy.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AMP LIMITED – ASX AMP

Traders see end in sight for RBA rate rises

roymorgansocial Leave a comment

Original article by Cecile Lefort, Jonathan Shapiro
The Australian Financial Review – Page: 23 : 6-May-26

Money markets still expect the Reserve Bank of Australia to increase official interest rates by another 25 basis points by September; at 4.6 per cent, the cash rate would be at its highest level since 2011. However, bond traders now expect just one more rate rise in 2026, with the chances of two more increases having been pared back from 80 per cent to 65 per cent. IFM Investors’ chief economist Alex Joiner says the RBA’s revised economic forecasts imply that its preferred measure of underlying inflation will return to its target of 2.5 per cent by February. He says this suggests that the central bank could switch to an easing bias in late 2026 or early 2027.

CORPORATES
RESERVE BANK OF AUSTRALIA, IFM INVESTORS PTY LTD

Aussie dollar to fly as RBA goes it alone on rates

roymorgansocial Leave a comment

Original article by Grace Lagan
The Australian Financial Review – Page: 23 : 29-Apr-26

The US Federal Reserve, its British and Canadian counterparts and the European Central Bank are widely tipped to leave official interest rates on hold this week. In contrast, the Reserve Bank of Australia is expected to increase the cash rate next week, for the third time in 2026; inflation data for March is likely to strengthen the case for another rate rise. Foreign exchange strategies note that the Australian dollar and local bonds are likely to benefit from the widening gap between domestic and international interest rates.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA

Card surcharge ban to lift fees, rates

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 12 & 17 : 1-Apr-26

Treasurer Jim Chalmers says the Reserve Bank of Australia’s decision to ban credit and debit card surcharges from 1 October will provide cost-of-living relief for consumers and businesses. The federal government itself had previously committed only to banning debit card surcharges. The RBA estimates that the move will save consumers about $1.6bn a year; however, Alan Machet from Visa warns that credit card fees and interest rates will rise, while the RBA has conceded that some businesses may seek to offset the abolition of surcharges by increasing their prices. The central bank has also advised that the cap on interchange fees for credit cards will be reduced to 0.3 per cent of the value of a transaction, compared with 0.8 per cent at present.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, VISA INTERNATIONAL