Category: Rate Club Blog

Will interest rates rise? The Reserve Bank of Australia has announced in its March 2022 meeting that they are not looking to increase the cash rate until inflation is sustainably in the 2% to 3% per cent target range. However, many economists agree that we will see interest rate hikes as a certainty for 2022. The cash...

Is Scott Morrison asleep at the Wheel? The chart below shows that with a stroke of the pen APRA have excluded the average voter from accumulating assets to become self-funded retirees. Is Scott Morrison aware these credit restrictions are creating a whole generation of poverty? This will be a permanent drain on the...

Last week I promised you more quotes from APRA that would reveal the continuing bureaucratic bungling in property. Well, we didn't have to wait long. At a recent finance conference, he lectured mortgage lenders on the growing risks. He failed to say that APRA has created those failed risks. Club investors know that we...

The NAB has announced on Thursday that they have lifted their full-year profit 2.5% to a staggering $6.6 billion. With a bottom line like that, you would think that the NAB would be content but you would be wrong, in the same breathe the NAB announced that due to “reshaping our workforce” 6000 employees will lose...

Every 2% appreciation in the Australian dollar is a $1 billion loss to the RBA. The control of the rise is simple. The RBA just needed to lower interest rates to bring down our Australian high rate to in turn bring down the Australian dollar. Like bunnies caught in the spotlights of an oncoming truck, our Reserve Bank...

The Australian Federal Government has just locked in a $3 billion loan fixed for ten years. Would you like to borrow at that same rate? It was just 0.75%! Two things... 1. This money should go immediately into job creation and low-interest rate loans to the non-major banking sector to end our credit squeeze. This will...

Look at the rate and period our government has locked in! Cost of funding Government? 4.75% in 2015 subtract the 2% now that they have! And they are fixed at that rate for 20 years! High Underemployed There is currently 1 in 3 Australian's looking for more work! Australian underemployment is the highest of modern...

Did you see channel 9's, 60 Minutes on Sunday? It was about the bank squeezing a client into bankruptcy. There is a warning in this if you have a home mortgage or investment mortgage or a loan for shares. The bank funding you can legally cause you to go into bankruptcy. They can squeeze you into bankruptcy, even if...

The chief executive of Australia's largest bank has warned that sovereign risk is rising "exponentially" because of unpredictable government policy, as he lashed the South Australian government's bank levy as an "unprincipled and reckless tax grab. We think the reverse Mr Banker, we think there is a Sovereign risk...

The bank's funding base rate continues to fall and the big one is the ten year rate down almost half a percent. Given the high underemployment talk of recession will soon get into the media and our too little too late RBA will reduce rates. Mr Treasurer, you are the first Liberal Treasurer to not ring the banks if...

People act in fear. The banks know it and they can use this to encourage people to fix at the wrong time. The chart below shows the history of loans being fixed. If you compare that with the interest rate chart from the RBA you can see that most people fix at the wrong time - just before a rate drop. Is that happening...

The Reserve Bank have just realised in a press release that mining profits shock horror mostly go overseas leading to an income deficit in Australia. Of course, this is what we have been saying since we pointed out we have a mining boom, no! We have a mining mirage from back in 2009. I wonder, if it is going to take 8...