In its panic the government has over-stimulated the economy and that fiscal mistake is going to have adverse consequences, writes Sinclair Davidson.
Interest rates
Interest rate rise small change for mug punters
Yesterday’s interest rate rise was, in monetary terms, roughly what we spent yesterday per head losing on the Cup. And if we just offset the cost of all the hats and champagne with the lost working hours spent on office sweeps…
Forget mortgage holders, every rate rise hurts business
Why is the media so fixated on mortgage holders? More concerning is how much power the Big Four banks now hold over the economy, and how SMEs are struggling to get finance.
Gittins: Have a flutter on the economy
If we can afford to gamble A$137 million on the Melbourne Cup, then we can afford to raise interest rates 0.25 percentage points, says Ross Gittins. Especially since we probably won’t see another rise until February.
Kelly: How next year will unfold for Wayne and Kevin
Avoiding a recession has become both a gift and a burden to the Rudd government, writes Paul Kelly. Expect a battle between managing the economy recovery and spending on big ticket election issues — climate change, health and households. Can Swan reign in spending?
Gottliebsen: The Australian dream is over
Yesterday’s rate rise, coupled with recent changed to Australia’s superannuation policy, locks us into a nation-changing situation: we will soon be a nation of renters, says Robert Gottliebsen.
RBA lifts rates, declares GFC dead
The Reserve Bank has lifted interest rates by 25 basis points to 3.50%. Get set for a slew of increases as Glenn Stevens lets the good times roll.
Political snippets: A firm favourite at 2.30pm
The Crikey Interest Rate Indicator is still predicting a 0.25% rise today, today’s Newspoll looks a bit suss, and Chechnya’s race horse-owning President Ramzan Kadyrov takes aim.
Ask the economists: tomorrow’s RBA announcement
We asked the economists for their punt on the RBA’s interest rate announcement tomorrow, just ahead of the race that stops a nation. They say that the numbers will just keep going up…
Wood: Interest rates must rise. Deal with it.
With a strong economy, low inflation and a rising Aussie dollar, a Cup Day interest rate rise is now almost a certainty. And so it should be, says Alan Wood: rates can’t remain at 50-year lows forever.
Blame the states when RBA lifts rates
When the Reserve Bank lifts interest rates next Tuesday and again either in December or February, you can thank the lazy, fat, rapacious State Governments.
Political snippets: Let the Olympic lobbying begin
A promising start for the Australian Olympic Committee’s four-yearly campaign to keep their funding gravy train on the rails, how much should we pay for some African goodwill? real interest rates return, and more meaty chunks from Richard Farmer.
The RBA charm offensive
The Reserve Bank is about to embark again on a major selling program as inflation and interest rates resume their historic relationship in the minds and forecasts of the central bank.
RBA: “possibly imprudent” not to lift rates
The Reserve Bank lifted interest rates because it might have been “possibly imprudent” not to do so — quite a telling phrase for such a conservative organisation.
Australians don’t blame Rudd for interest rate rise
The latest Essential Report reveals some surprising public opinions: 55% of Australians believe the latest interest rate hike reflects a positive trend in the economy, not “reckless and excessive stimulus spending”. Possum Comitatus has the rest.
Spending borrowed monies leads to false bravado
If you were to believe world stock markets, the recession is drawing to a close, with the wisdom of government spending and global monetary easing spurring the world to another economic recovery. But the markets have long proven to be an unfaithful talisman.
Political economy: Stevens’ rate rise fever goes global
Congratulations, Glenn Stevens, for preparing us for bold rate hikes, writes Henry Thornton.
Stevens still sees the sunny side up
RBA Governor, Glenn Stevens, has rejected claims that the Australian economy is “too strong”. We may have escaped the global crunch but he’s determined not to fluff the recovery.
Experts get it very wrong on rentals
The rental market is fairly uncomplicated, but business journalists are commonly thinking of reasons as to why rents go up or down. This is only one reason: the number of vacant rental properties.
Interest rates: the difference between reality and chatter
Amid the media chatter today about what the interest rate rise means for the “stimulus debate”, news from the real world is that the majority of Australians reckon the government is handling the economy very well.
Spiralling dollar spells current account chaos
Standby for a good, old fashioned current account scare, as the Australian dollar continues to rise as it did last night in the wake of the Reserve Bank rate rise.
Colebatch: Good news for the economy (if not your mortgage)
Many Australians have become too used to artificially low interest rates and government gifts to see that the RBA’s rate hike is actually good news for the economy.
How the RBA stole Christmas
The RBA raised interest rates to 3.25%, and business isn’t happy, despite indications the economy is back on track. With Christmas just around the corner, will the hike put a damper on consumer spending splurges?
Rates up, more to come
The rate rises have begun, with RBA today lifting its cash rate 0.25% up to 3.25%. Is the Australian economy officially back on track?
Triguboff, Keane talking fiction on house prices
Billionaire Harry Triguboff’s pleas for the RBA not to raise interest rates today are informed by a massive conflict of interest: the longer Australia’s housing bubble continues, the more Triguboff can sell his apartments for.
