Why Australians needn't panic about possible interest rate rises as RBA ponders next step

They say talk is cheap, although for the past few years, it hasn't been quite as cheap as cash.

There now is little doubt that the pandemic has changed the course of history, or at least been the catalyst for a long-overdue shift in the tectonic plates of the financial world.But before you hit the panic button, it might be worthwhile to sit back and chill just a little. For unless you've plunged everything into ultra high-risk investments, like technology companies that don't earn any money, the chances are you'll survive the shift just fine.

But they lost control a year ago, and while they remain a powerful force in the marketplace, they are far from omnipotent. Check out the graph below, at the market where interest rates really are set; that dictate to banks the rate at which they can borrow and lend. It’s been the same story across the globe. In Germany, until last week, government bond rates for years have been below zero. That’s just ludicrous, conflicting with 5,000 years of human history and any sense of logic.

Marshalling its low-cost labour force, it produced everything from clothing and shoes to tools and heavy machinery and ultimately, high-tech communications. And because they were produced at such a massive scale, it could export them at prices way below the cost of production in the developed world. Central banks like the Bank of England have cut interest rates in times of crisis over the past 25 years.

Have we been set up to fail?

When Shorten wanted to remove a few twinkies they called Him a thief, when the RBA robs You of your interest from Termdeposits to help Developers to Cheap Money, so what are they !!!

RBA should be able to set the margins without being accused of interference in the profits, grow up..

Raising interest rates would do nothing to control inflation 👇

It be interesting to see if the HOT housing market will correct

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘You’re awesome and you’re doing great’: Why life coaches are in demandThe life coaching business has been turbo-charged by the pandemic, with many of us looking for ways to change not just our habits but our thought patterns. Has it worked? GoodWeekendMag GoodWeekendMag Rubbish, who's selling what?
Source: smh - 🏆 6. / 80 Read more »

‘You’re awesome and you’re doing great’: Why life coaches are in demandLife coaching focuses on the future, unlike therapy, which can dwell on the past. And it’s not about giving direct advice. “The client is the expert in their own lives,” says Davia McMillan, president of the ICF’s Australasia chapter. | melfyfe GoodW... melfyfe GOODW C-suite in US and EU have seen coaches as indispensable for decades.
Source: theage - 🏆 8. / 77 Read more »