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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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 job report could affect stock market
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.
Stock market graph
This Bull Run Still Has Legs to Run
Stock markets can be volatile. You’ve been reminded of that over the last week. It’s led some to make sweeping statements about a market crash. Just keep a couple of things in mind when reading such analysis. One, the US economy remains strong.
RBA's next move
The New Central Banking Era of Nothing
The latest minutes release from the RBA was so uneventful that the XJO dropped about seven points in the aftermath. And that’s on a day in which investors were dumping stocks. The RBA is a little too upbeat about economic conditions at present. Things aren’t rosy. And, in my view, it’s unlikely we’ll see rates rise this year.
interest rates could go lower
Get Ready for Even Lower Interest Rates
National Australia Bank has a consensus view that the RBA will start increasing the cash rate around August. But there’s a problem with that line of thinking. Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about.
Australian property market
How to Own Almost 200 Properties
It’s not the number of properties that makes you rich; it’s the percentage you own. For example, imagine two investors. One owns 20 properties, the other owns three. Who’s better off? To decide, we need more information.