Interest Rates

The Fed may lift rates sooner than you think

A recovering labour market should see the US economy finish the year on a stronger note. And with inflation also tracking higher, the Fed may have reason to lift rates earlier than expected.

Fed nears end of bond-buying program

Latest monetary policy statement offers little fresh insight on rate hike timing, as bond-buying program remains on track for October end.

‘Significant correction’ ahead: Greenspan

Former chairman of the Federal Reserve says correction on horizon, but stocks not ‘grossly overpriced’.

German bonds plunge amid Ukraine crisis

by AFP
German borrowing costs dip to record low as investors flock to perceived safe haven of bonds.

Spain, Italy borrowing costs hit fresh lows

by AFP
Interest on Spanish and Italian debt falls to record lows as investor concern fades.

Weekend Economist: How high?

With inflation stirring, the debate is beginning to move from whether the RBA will cut or hike next, to how high rates might go.

The price we'll pay for the RBA’s low-rate policy

The Reserve Bank slashed interest rates while the economy was strong. Now we are left with an out-of-whack property market and rising inflation that may not be so easy to reverse.

Australia mustn't jump the gun on macro-prudential policy

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The effectiveness of macro-prudential policy in regulating financial systems has yet to be quantified, and the Murray Inquiry is right to advise that the RBA and APRA tread with caution.

Parkinson warns on low rates

Treasury secretary says pressure needs to be taken off monetary policy.

Aust dollar above US94c in late trade

Local currency lifts after core inflation figures beat analysts' expectations.

Weekend Economist: Strong language

The Reserve Bank needs a combination of jawboning and an easing bias to bring the dollar down, but the latter is unlikely anytime soon.

Fed's Fisher calls for earlier rate hikes

Federal Reserve Bank of Dallas president says rates should rise early next year, at the latest.

Yellen not fearful of asset bubbles

Fed chair says threats to financial stability are only at a 'moderate level'.

US recovery 'not yet complete': Yellen

Federal Reserve chair offers more guidance on timing of rate hikes, strikes cautious tone.

Lloyds nears US, UK Libor deal

British bank close to rates manipulation settlement with authorities in UK and US.

RBA uncertain on easing's effect

Central bank finds it difficult to judge extent to which low interest rates are working.

Wave of cash returns to Aust

Foreign investors in heavy buying of Aust dollar and govt bonds amid chase for yield.

Gold in largest drop since December

Precious metal slumps on concerns US central bank may raise rates sooner than expected.

The 'new normal' has neutralised the RBA

Neutral interest rates are falling across the developed world, including in Australia, leaving the RBA with less room to move. If state and federal governments don’t pick up the slack a recession could be on the cards.

US hike could hurt Aust dollar: Stevens

Goldman Sachs economist says Reserve Bank could be forced to cut within months.