RBA cash rate

[farmerge]

There'd a be a lot to fear if he did so.

Regardless of what anyone thinks of the RBA, a central bank making decisions beats having them made by politicians.

Last thing we need is the likes of Nick McKim completely trashing the currency and turning Australia into Venezuela.

That would have to be the worst possible thing that could happen.
It would be "pork bareling" at its worst, especially if an election was looming.
Shades of the "children overbaord" saga some years ago.

 

[farmerge]

SSHSSH !

@ 12 volt many households could basically live off-grid ( add maybe a wood or gas fired grill/oven ) ( no more smart meters-carbon mapping )

Hook up a few bulldozer 12 volt batteries and bingo plenty of juice to power everything

 

[qldfrog]

There'd a be a lot to fear if he did so.

Regardless of what anyone thinks of the RBA, a central bank making decisions beats having them made by politicians.

Last thing we need is the likes of Nick McKim completely trashing the currency and turning Australia into Venezuela.

Victoria reflected their dictator,so maybe not that far???

 

[qldfrog]

Hook up a few bulldozer 12 volt batteries and bingo plenty of juice to power everything

There is a problem with low voltage, to get high energy (kw) in your appliance motor, heating etc. The lower the voltage, the higher the amp and high amps means bigger cables and you end up with welding currents on all your internal cables...not a good thing and the reason why there is a move to higher voltage batteries in cars and home systems , or even garden tools
Interlude over ?

 

[mullokintyre]

Here we go,
When I was a lad, my grandad had two chook batteries 600 laying hens in each, an acre of planting paddock for potatoes or whatever, a small but productive granny smith orchard, 10 stye piggery and delivered school lunches, all on 7 acres.
He changed his cars on a regular basis.
He left school at 13 and worked in the coal mines, you wouldn't meet a harder bloke in your life. Lol
That was in North East Yorkshire not Australia. Lol

You blokes should all watch Monty python 4 yorkshiremen
mick

 

[divs4ever]

You blokes should all watch Monty python 4 yorkshiremen
mick

yes , i was tempted to post a link to that as well

 

[sptrawler]

You blokes should all watch Monty python 4 yorkshiremen
mick

I look like that remark, born in Yorkshire, the land of ecky thump. ?
You Australians think you've had it hard, you avn't lived.

 

[Smurf1976]

Victoria reflected their dictator

With a normal mirror?

Or one of those silly ones seen at fairs etc that distort the image?

 

[qldfrog]

With a normal mirror?

Or one of those silly ones seen at fairs etc that distort the image?

Reelected self corrected I guess
?

 

[mullokintyre]

The minutes are out re the last RBA board meeting, and it seems that the RBA thinks more rate raises may be needed.
From Evil Murdoch Press

Mortgage holders should be prepared for more pain in coming months, after new Reserve Bank board minutes revealed “further increases in interest rates may still be required” in order to bring inflation back under control.
The RBA on May 2 surprised investors and most economists by lifting its cash rate target from 3.6 per cent to 3.85 per cent.

The minutes from that board meeting showed members debated the cases for a pause versus a hike, including “multiple arguments” in favour of an 11th increase in 13 months.

The central bank forecasts consumer price growth to drop to the top of the 2-3 per cent target range only by mid-2025, from 7 per cent now.

Members said this prediction “left little room for upside surprises to inflation, given that inflation would have been above the target for around four years by that time”.

While the board “noted that inflation had peaked and was showing signs of slowing further”, they discussed the potential for inflation to not come down as quickly as expected, and this eventually was considered the greater risk than inflation proving lower than anticipated.

While goods inflation had eased, services inflation could follow the overseas lead and prove more persistent, the minutes noted.

What’s more, “strong population growth and low rental vacancy rates could also see rents grow even faster than the central forecast envisaged”.

“Another upside risk to inflation was the possibility that productivity growth remains very weak,” the minutes noted.

“Members observed that the forecast for inflation to return to the top of the target band by mid-2025 was predicated on productivity growth returning to around the modest pace recorded prior to the pandemic.

“If this did not occur, growth in unit labour costs would be uncomfortably fast.”

There was also the risk of inflation becoming more entrenched in the country’s psychology, which would make it harder to shift later and require sharply higher rates.

A depreciating Aussie dollar – which tends to boost imported inflation – and the recent turn in the property market also argued in favour of another rate hike, the minutes showed.

“In reaching their decision, members acknowledged that there were still significant uncertainties surrounding the economic outlook, particularly for household consumption.

“But, on balance, given the board’s strong commitment to price stability and the importance of ensuring that inflation expectations remain anchored, members judged that a further increase in interest rates was warranted.”

The minutes reiterated the board’s “determination to do what is required to bring inflation back to target, while emphasising that it is still seeking to traverse the narrow path”.

“Members also agreed that further increases in interest rates may still be required, but that this would depend on how the economy and inflation evolve,” the minutes said.

Don't think they are finished raising just yet.
Mick

 

[mullokintyre]

The minutes are out re the last RBA board meeting, and it seems that the RBA thinks more rate raises may be needed.
From Evil Murdoch Press

Don't think they are finished raising just yet.
Mick

There is another consideration that probably needs to be taken into account, and that is the level of the AUD/USD pair.
Today it is below 0.655.
At what stage does the RBA start to think about supporting the AUD with higher rates?
Its not like it is a new phenomenon that they have never considered in the past.
Mick

 

[Dona Ferentes]

Oh well

The RBA has lifted the cash rate to an 11-year high of 4.1 per cent as it grapples with high inflation, accelerating wages growth and flatlining productivity. (try feck ta')

• ASX drops as RBA bows to inflation, lifts rates 0.25pc​

• RBA urged to deliver more interest rate rises​

• Wage rise locks in another interest rate increase​

 

[wayneL]

Oh well

The RBA has lifted the cash rate to an 11-year high of 4.1 per cent as it grapples with high inflation, accelerating wages growth and flatlining productivity. (try feck ta')

• ASX drops as RBA bows to inflation, lifts rates 0.25pc​

• RBA urged to deliver more interest rate rises​

• Wage rise locks in another interest rate increase​

They shoulda gone .5

 

[sptrawler]

There is another consideration that probably needs to be taken into account, and that is the level of the AUD/USD pair.
Today it is below 0.655.
At what stage does the RBA start to think about supporting the AUD with higher rates?
Its not like it is a new phenomenon that they have never considered in the past.
Mick

Why support the Aussie dollar, apart from helping me out on my next 3 holidays?
The dollar drops imported goods get more expensive, consumers buy less, saves the RBA doing the job.

 

[sptrawler]

They shoulda gone .5

Give it time, my guess is they top out at 5.25%, we should start a sweep.

 

[farmerge]

Give it time, my guess is they top out at 5.25%, we should start a sweep.

Unless Gov Lowe makes more outlandish statements about where interest payments will be .......

 

[sptrawler]

Unless Gov Lowe makes more outlandish statements about where interest payments will be .......

Or the Govt keeps feeding in stimulus. ?

 

[farmerge]

Or the Govt keeps feeding in stimulus. ?

What's going to be the best vote catcher???

 

[sptrawler]

The Government has always said that it wants the fair work commission to allow wages to keep up with inflation, so that's what's happening, the RBA has only interest rates to keep inflation under control.
So it isn't rocket science, the Govt keeps feeding it, the RBA keeps hitting it, as I said earlier interest rates will keep rising until the Govt stops feeding the inflation.
There has been a 10% increase in welfare payments, large payrises across the public sector, cash injections for electricity relief, the cross industry pay claim rules have just come in, the next round of tax cuts are coming next year, yes I can see inflation peaking, not.?
Poor old Phil is the fall guy.

 

[farmerge]

The Government has always said that it wants the fair work commission to allow wages to keep up with inflation, so that's what's happening, the RBA has only interest rates to keep inflation under control.
So it isn't rocket science, the Govt keeps feeding it, the RBA keeps hitting it, as I said earlier interest rates will keep rising until the Govt stops feeding the inflation.
There has been a 10% increase in welfare payments, large payrises across the public sector, cash injections for electricity relief, the cross industry pay claim rules have just come in, the next round of tax cuts are coming next year, yes I can see inflation peaking, not.?
Poor old Phil is the fall guy.

Thouh Gov Phil didn't help the cause with earlier predictions that most people took as gospel.