RBA the trendsetter as inflation fight enters next phase: BlackRock

The Reserve Bank of Australia is in a league of its own when it comes to combatting inflation, according to one of the biggest investors in Australia, and could set the tone globally on where interest rates go next.

The Reserve Bank is trying to get interest rates back to normal. But many people believe there is a new normal.“Governor [Phillip] Lowe is trying to keep the economy on an even keel, as he says, and he’s trying to land a jumbo jet on a very short runway at the moment ... if they can land the jumbo, it will be an extraordinary outcome,” Vardy said at a roundtable with Blackrock’s Australasia team on Wednesday.“The RBA seems to be on a different tack to other central banks,” Vardy said.

Most economists had expected a 0.5 per cent rise from the RBA on Tuesday. UBS chief economist Carlos Cacho said in a research note on Wednesday he now expected a hike of 0.25 percentage points in November and in December. Investors at BlackRock say the RBA has taken a different trajectory to other central banks around the world.Ben Powell, the APAC chief investment strategist at the BlackRock Investment Institute, said Australia was more sensitive to rate hikes because there are more variable home loans here compared to other countries.

SimoneFoxKoob Business benefitting from a decade of reckless central bank money printing wants central banks to slow down rate rises….surprise surprise.

SimoneFoxKoob Feels like To much power in one organisations hands . . . Or one persons . . . Not sure which but as an average person, doesn’t feel right

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.

Labor has to help the RBA’s inflation fightOPINION: The Reserve Bank has dialled back the hawkishness but can’t fall too far behind the US Fed. And the Albanese government has to help.
Source: FinancialReview - 🏆 2. / 90 Read more »

RBA hikes interest rates for sixth consecutive monthBREAKING: The Reserve Bank has lifted interest rates for a SIXTH consecutive month, increasing the cash rate by another 25 basis points to 2.6 per cent. FULL STORY: 9News Just another kick to the nuts of struggling Aussies. And Albo is doing sweet f*ck all to help them Just another useless virtue signalling socialist Kurt19899 9NewsSyd The banks would raise mortgage rates by 50 basis points anyway
Source: 9NewsAUS - 🏆 10. / 72 Read more »

S&P/ASX200: ASX rockets 3.8pc as RBA pivot soothes recession anxietyThe local sharemarket posted its best session in more than two years as the RBA’s shock move triggered a sharp fall in bond yields and the Aussie dollar.
Source: FinancialReview - 🏆 2. / 90 Read more »

All of the Big Four banks move quickly to pass on interest rate riseThe RBA has slowed its aggressive rate rise until at least the end of the year - the board increasing the cash rate for a sixth consecutive month by a quarter of a percentage point. MORE: R_DAlessandro9 9News R_DAlessandro9 this would of happened regardless of who won the election
Source: 9NewsAUS - 🏆 10. / 72 Read more »

The world will watch the RBA’s pivot. So will Aussie home ownersWhile the global financial markets mull the importance of the RBA’s go-slow, some local home owners will have more pressing concerns. Yet no one pays heed to the plight of bank investors, it's quite one sided.
Source: FinancialReview - 🏆 2. / 90 Read more »