Tag: RBA

And Now The Pain Begins…

We look at the latest data as interest rate rises are passed through to borrowers, the changes in housing affordability, and the horrendous mess the RBA has made. Which begs the question where to from here?

[Content]

0:00 Start
0:15 Introduction
1:00 Marginal Buyers Under The Bus
5:37 Banks Pass The Rate Hikes On
14:20 Home Prices To Fall
16:43 Housing Affordability Dies
19:59 RBA Major Fail – What Now?
24:41 Conclusion

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Quantitative Tightening Comes To Town!

We discuss the RBA’s QT programme as presented https://www.rba.gov.au/speeches/2022/sp-ag-2022-05-23.html

As the Bank now takes steps to remove the considerable monetary stimulus, increases in the cash rate are the tried and tested measure that will do most of the work, including because they can be easily calibrated to evolving economic conditions. The end of the TFF and the gradual process of QT will also play a role in this task, but a predictable and modest one.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

Go to the Walk The World Universe at https://walktheworld.com.au/

The RBA’s “Gotcha” Moment Has Real Life Consequences!

The fact is the RBA has been off the pace in terms of forecasts, and strategy, and as a result they are not lifting rates into a slowing economy to try to tackle inflation which they partly created.

In addition, the latest Statement on Monetary Policy shows real wages are set to decline over the next couple of years, while overall growth will decline, despite a (artificially) low unemployment rate.

Time for a proper review of the RBA – how do we make the Governor and his team more accountable. Being embarrassed is not enough!

Go to the Walk The World Universe at https://walktheworld.com.au/

FINAL REMINDER: DFA Live 8pm Sydney Steve Keen TNL

Join us for a live discussion as I explore the intersection of politics and economics with Professor Steve Keen, who is running in the upcoming election as a Senate Candidate for TNL.

Affordable Housing

You can ask a question live.

Go to the Walk The World Universe at https://walktheworld.com.au/

The RBA Pulls The Cash Rate Trigger!

The RBA lifted rates by more than some were expecting., and are predicting higher inflation ahead. With a cash rate 25 basis points higher, how will this play out in the context of the election and also household confidence levels?

Go to the Walk The World Universe at https://walktheworld.com.au/

The RBA Predicts House Price Falls!

The RBA Financial Stability Report includes a warning about high household debt AND home price falls. But their “new” model is proposing a less powerful relationship between prices and interest rate moves than their previous one (which was built at a time lower rates were expected…) I smell a rat…

They suggest 15% falls over a couple of years if interest rates rise by 2%, whereas the previous model was ~28% for 1% change.

Pretty convenient eh?

Go to the Walk The World Universe at https://walktheworld.com.au/

The RBA Is To Check On Australia’s Gold (Well Sort Of!)

A senior Reserve Bank official is about to jet off on an all-expense taxpayer-funded trip to London to check that Australia’s 80 tonnes of gold bullion is still in the Bank of England’s vaults, the AFR says.

News of the impending departure was made during Senate estimates on Wednesday night and comes after a campaign by renegade LNP Senator Gerard Rennick who has long-held concerns that Australia is being dudded and the nation’s gold holdings are not where they should be.

Senator Rennick’s concerns stem from a “strictly confidential” RBA memo supplied to parliament, which states that “the existence of fake gold bars has been detected, in the past, by the presence of duplicate serial numbers”.

The Bank of England holds about 6400 bars on behalf of the RBA, worth about $6 billion. They sit alongside another 400,000 bars in special vaults used for centuries.

See my earlier show with John Adams on the subject: https://youtu.be/oa-PNCykb-8

Go to the Walk The World Universe at https://walktheworld.com.au/

A Deep Dive On Household Debt And Income Ratios…

We look at the latest data from the RBA on household ratios, and ask how meaningful they are, given the assumptions and basis of calculation on which they are based.

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.