Australia surprises market with quarter-point hike, currency falls - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 50%

United States News News

United States United States Latest News,United States United States Headlines

BNN BLOOMBERG POLL: How large do you think the Bank of Canada’s next rate hike will be?

The Reserve Bank raised the cash rate to 2.6 per cent -- a result predicted by only a quarter of economists surveyed, including Commonwealth Bank of Australia and AMP Capital Markets. Governor Philip Lowe reinforced a commitment to tightening even as he acted on signals that he would do so at a slower pace.

Australian policymakers are mindful that their household sector is among the world’s most-indebted and that the prevalence of variable rates on mortgages means hikes are particularly potent. The RBA is already in the midst of its sharpest policy tightening in a generation as it joins global counterparts in trying to rein in spiraling inflation.

“The board expects to increase interest rates further over the period ahead,” Lowe said today. “It is closely monitoring the global economy, household spending and wage and price-setting behavior.” Diana Mousina, a senior economist at AMP, highlighted that close to 60 per cent of mortgages are on variable rates, while even those fixed are typically on terms of 2-3 years, versus 30 years in the US.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

8f the hike is anything less than 75bps, Canadian Dollar will fall to below levels: 50bps: US $0.70 25bps: US $0.65 0bps: US $0.60

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:

 /  🏆 83. in US

United States United States Latest News, United States United States Headlines

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

Credit Suisse market turmoil heightens after memo backfires - BNN BloombergCredit Suisse was plunged into fresh market turmoil after Chief Executive Officer Ulrich Koerner’s attempts to reassure employees and investors backfired, adding to uncertainty surrounding the bank.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Stocks fall, U.S. futures wobble on economic jitters - BNN Bloomberg​Global stocks fell to a two-year low, while U.S. index futures struggled for direction, amid concern hawkish policies by global central banks will spark a recession and earnings contraction.
Source: BNNBloomberg - 🏆 83. / 50 Read more »