compared to the heavy-handed and highly risky approach taken by the US Federal Reserve board.
Fed chairman Jerome Powell and the RBA’s Philip Lowe are taking a different approach to fighting inflation.This strategy, which is likely to be repeated in December, gives the central bank an opportunity to assess the impact of earlier moves and avoid a recession.
Including refinancing, overall mortgage applications hit a 20-year low last week. This rapid decline in the US housing market is a function of the surge in interest rates with 30-year fixed rate mortgages now at 7 per cent. Powell should take a leaf out of Lowe’s book, and recognise that monetary policy is a blunt instrument that operates with a lagged effect.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
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.
How high will interest rates go? We may be about to find outWith the RBA and US Fed meeting this week, we set to get an insight into just how high interest rates could go and when they might start to come down. | OPINION I remember my mortgage going up to 17% under Keating. I’m confident AlboMP will attempt to break that record.
Source: theage - 🏆 8. / 77 Read more »
How high will interest rates go? We may be about to find outWith the RBA and US Fed meeting this week, we are set to get an insight into just how high interest rates could go and when they may start to fall.
Source: brisbanetimes - 🏆 13. / 67 Read more »
How high will interest rates go? We may be about to find outWith the RBA and US Fed meeting this week, we are set to get an insight into just how high interest rates could go and when they may start to fall.
Source: smh - 🏆 6. / 80 Read more »
Reserve Bank lifts interest rates to nine-year high of 2.85 per centRBA governor Philip Lowe acknowledged that rates had risen “materially” since May but said the board expected to increase them further over the period ahead. Typical. I've struggled my ass off to get to build a house, and a few months before it's finished the interest rates are soaring. Guess I'll just stay poor.
Source: brisbanetimes - 🏆 13. / 67 Read more »
Interest rates will be lifted aggressively in new year 'if we need to', RBA governor saysThe RBA says it will keep an eye on inflation over summer, and is prepared to hike rates aggressively in the new year if it needs to. Says the man making a million dollars per year. Hey, let's build another solar array.... That should fix it. Like $30B worth.🤓👍 Is that the best they can spin it?
Source: abcnews - 🏆 5. / 83 Read more »
Interest rates lifted to nine-year high to tackle ‘the evil of inflation’RBA governor Philip Lowe acknowledged that rates had risen “materially” since May but said the board expected to increase them further over the period ahead. rachelclun swrighteconomy Thanks Albo. Killing it mate. rachelclun swrighteconomy Looks like the RBA is battling to save the housing market rather than really tackle inflation. rachelclun swrighteconomy How does hurting the poor who carry bank loans and benefiting the rich who lend the poor money lower inflation. It makes the rich who do all the spending spend more. The poor in debit have nothing to spend. Add tax to luxury goods. Simple solution
Source: smh - 🏆 6. / 80 Read more »