Interest Rates

Whether it’s the rate you pay on your mortgage or business loan to the return on your money at call in the bank…the interest rate is the key variable in the economy.

In fact, it’s THE most important signal in the economy. Alas, if you think the economists at the RBA know what they’re doing when they fix the price of money, you’ll soon learn why the economy lurches from boom to bust.

Will interest rates rise?

A question you all may have..

Markets and Money will show you the threats and opportunities. For example, when interest rates fall, investors often go hunting for dividend stocks and bid their prices up. When interests rate rise, you don’t want to own companies with a lot of rate sensitive debt.

Discover if you should be in cash, stocks or bonds and why below…

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Forget Bitcoin and Focus on Stocks
Forget Bitcoin and Focus on Stocks
Have you heard the latest news? Twitter banned advertisements on cryptocurrency initial coin offerings (ICOs). Bitcoin fell 7% on the news. It's currently trading below US$8,000 at the time of writing. Weeks of regulatory uncertainty has weighed on the digital currency.
debt and deficit
Overheard in a Wall Street Bar…
Households are borrowing 90 cents for every incremental dollar they spend, up from 40 cents four years ago. Household debt service costs are expected to increase by $75 billion this year — almost completely offsetting any gains from the tax cut.
gold price rally
This is Why the Gold Price Could Rally
The global economies may be growing in sync for the first time in 10 years, but it may not last long. Gold is used as a hedge in times of turbulence and uncertainty. And as a hedge against inflation and risk. Moreover, gold could rally if trade tensions between the US and China keep up.
Australian economic news
Surprise Attack
Ever since June 1991 — our last official recession — the textbook approach to generating GDP growth has been to encourage households to borrow to ‘get the economy moving’. Our economic ‘success’ has really been a massive failure…setting households up for an extended period of financial pain and in some cases, ruin.
household debt at an all time high in australia
No Taming the Debt Beast
Wages not growing and property prices at record highs mean that household debt is reaching record highs. And household debt is already becoming a burden that could restrict growth. Australian household debt is at one of the highest in the world, at almost 200% debt to income ratio. Household debt affecting consumption is a big worry for the RBA
Bernie Sanders
Why the Country Would Have Been Better Off With Bernie
Over the last couple of days, we’ve been laying our own cards on the table. We want dear readers to see what we’re holding — including the jokers. Yes, in addition to the fairly standard jacks of stock prices, queens of GDP growth rates, and kings of inflation, we have two cards that most people have never seen
Italian flag with coins representing Italy's debt
Italy Throws a Spanner on EU’s Plans
It’s been over a week since the Italian election. The French President Emmanuel Macron and German Chancellor Angela Merkel, were planning for more integration. They want to continue with a banking union to protect members in case of another financial crisis.
US economy illness
Stock Markets Happier on a Hiring Spree by US Businesses
In early February, markets looked to be on the brink of collapse because of concerns over rising interest rates and higher inflation. A month seems to be a long time in markets. In stark contrast to the month before, the market seems to have a happier disposition now.
world globe with graph representing stock market crashing
Flash Stock Market Crash Alert
Years of low interest rates and cheap money have pushed up asset prices and debt. Now, central bankers are looking to reverse this trend. That is, increasing interest rates and reducing the money supply. But if they tighten too fast they could trigger a recession.
RBA's next move
What Will Force the RBA’s Hand?
Much like the rest of the market, I don’t think there will be a move up this year. That means that the record run of flat rates looks set to continue. However, what will change this view very quickly are the two factors that go hand in hand — wages and inflation.
dollary symbol holding up property market
Property Market Incentives are Drying Up
Easy credit and low interest rates have meant a booming housing market. What do you think a cut on credit and higher interest rates will mean for the housing market? Developers are now offering incentives to buy property. Another sign that the property market is slowing.
Interest-only mortgage
The Interest-Only Craze Is Setting Us Up for Disaster
Interest-only mortgages may seem quite attractive at first. For one, opening payments are lower. This makes the loan look more affordable for people worried about taking on a large mortgage. And with house prices climbing in recent years — much faster than inflation and salaries — that is a worry.