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Reserve Bank of Australia expected to raise interest rates to 4.6 per cent
The Reserve Bank of Australia (RBA) is widely expected to implement its fourth interest rate hike of the year on Tuesday, September 29, potentially raising the cash rate to 4.6 per cent. This move aims to combat persistent inflation, which has been exacerbated by rising energy costs linked to geopolitical tensions in the Middle East. Markets are closely watching for the RBA's decision, with some economists suggesting the tightening cycle could continue into early next year.
Concurrently, the Australian housing market is showing signs of a slowdown. Recent data indicates that auction activity in capital cities fell by 22.4 per cent last week, with a total of 1,428 homes going to auction. The weighted average clearance rate dropped to 50.3 per cent, a 10-week low. In Sydney, while auction volumes rose by 39 per cent from the previous week, they remain 32 per cent lower than the previous year.
Economic experts note that falling house prices may act as a transmission mechanism for monetary policy, potentially easing inflationary pressures by reducing consumer spending through a negative wealth effect. Meanwhile, the gap between Australian and New Zealand benchmark interest rates is expected to widen following the anticipated RBA hike.
Entities
AMP · ASX · Australia · Finder · Michele Bullock · New Zealand · Reserve Bank of Australia · Shane Oliver
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 6 SOURCES] The anticipated rate hike would be the fourth increase by the Reserve Bank this year. www.brisbanetimes.com.au · www.smh.com.au · www.watoday.com.au · www.sharecafe.com.au · www.theage.com.au
- [○ 1 SOURCE] Auction activity in capital cities dropped by 22.4 per cent compared to the previous week. www.businesstimes.com.sg
- [○ 1 SOURCE] The weighted average home auction clearance rate in Australia's capital cities was 50.3 per cent. www.businesstimes.com.sg
- [● 6 SOURCES] Key inflation figures for August are scheduled for release on Wednesday. www.brisbanetimes.com.au · www.smh.com.au · www.watoday.com.au · www.sharecafe.com.au · www.theage.com.au
- [● 8 SOURCES] The Reserve Bank of Australia is expected to raise the key interest rate to 4.6 per cent on Tuesday, September 29. www.businesstimes.com.sg · www.brisbanetimes.com.au · www.smh.com.au · propertyupdate.com.au · www.watoday.com.au · +2 more
- [○ 1 SOURCE] Sydney recorded 790 auctions, representing a 39 per cent increase from the previous week but a 32 per cent decrease year-on-year. www.businesstimes.com.sg
- [○ 1 SOURCE] A total of 1,428 homes were taken to auction in Australian capital cities last week. www.businesstimes.com.sg