After ten consecutive interest rate rises, the RBA finally decided to pause. The interest rate remains at 3.5 percent. There is always a lagged response to interest rate rises but it has taken a while for the Australian economy to slow down. On top ...
Learn moreChart of the Month - March 2023 Are bad loans to Commercial Real Estate (CRE) the next stage of the US banking crisis? The inflation-recession dichotomy has been busted by a US and Swiss banking crisis. Duration risk and an old fashioned bank ru...
Learn moreThe risk-adjusted returns in Australia’s emerging private debt sector consistently beat comparable investments in the more sophisticated markets of Europe and the US, says Christian Brehm, CEO of FC Capital. Australia’s i...
Learn moreInterest rates will still need to rise higher and for longer, but there are signs in Australia and the major economies that a slowdown is coming. How fast that slowdown occurs will determine the actions of central banks over the next year. What is h...
Learn moreOn 7 March, the RBA did what was expected and raised the official interest rates by 25 bps to 3.60 percent. It was the tenth increase in a row. More increases will come this year, but we should start to see a slowdown in rate increases going forward. Th...
Learn moreThe Australian economy has many commentators puzzled. Interest rates and inflation have risen to their highest levels in years but households seem to be ok: unemployment remains low and household spending keeps increasing. The only sign of stress seems ...
Learn moreA happy lunar new year saw a strong start to the year for Australian stocks as China looks to regather lost momentum in 2023. However, the RBA is looking to pop the party balloons with some more rate increases this year. Until we know we have...
Learn moreCommentary on Reserve Bank Board Interest Rate Decision - 7 February 2022 On 7 February, Australia had its own version of Groundhog Day with the RBA Board increasing the official interest rates by 25 bps to 3.35 percent. It was the ninth increase in...
Learn moreRaising a Good Yield The bond market’s performance in 2022 was historically bad. For example, Vanguard’s Total Bond Market Index (US) was down -13.25% while the S&P Australia Aggregate Bond Index was down -10%. However, just like a b...
Learn morePositive economic results in December makes for a complex picture going forward. Central banks have seen enough of a slowdown in inflation to moderate their rate rises, but not enough of a slowdown in their economies to stop raising rates in Q1. Further...
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