No change to interest rates in the here and now
…but the future outlook has changed, says the Reserve Bank. Its board met yesterday and as expected, they decided to keep interest rates at the record low of 0.1% for the 12th month in a row. But there is chatter about what’s next because inflation is on the up, and the indicators show the national economy will get its groove on now that lockdowns have ended in Sydney and Melbourne. With those things heading in the right direction, the central bank says it will ditch one of its key economic stimulus measures known as ‘yield curve control’ – and that’s a whole thing for economic types. If you need something to help you fall asleep tonight, here’s an explanation… But the key takeout from yesterday is there’s a sense that interest rates will rise ahead of Governor Philip Lowe’s previous prediction of “not before 2024”. Economists say not this year, and maybe not in 2022 – but 2023 could see some movement.
Know someone who'd be interested in this story? Click to share...
The Squiz Today
Your shortcut to being informed, we've got your news needs covered.
Also Making News
Get the Squiz Today newsletter
Quick, agenda-free news that doesn't take itself too seriously. Get on it.