Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / Interest Rates

Category: Interest Rates

1-12 out of 18 results.

Bond basics and four messages in the search for yield

Bonds have been strong performers over many decades and always play a role in defensively-positioned portfolios. There are some basic principles investors should understand such as the types of yield.

Britain amid COVID and the pain of the final exit talks

No option removes the existential threats to the UK stirred by its EU departure. What started in 2016 as enough voters defying the odds has left the UK dangling politically and economically amid a pandemic.

10 reasons low interest rates may limit growth

Ultra low interest rates could be counterproductive for economic growth. Policymakers need to rely less on monetary stimulus and be mindful of the side effects they are creating, especially for retirees and savers.

Markets relying on central bank sugar hits

Global central banks are delivering a sugar hit that markets are relying on, but it is unsustainable. Interest rates cannot continue to be cut into negative territory forever. 

Why the Reserve Bank will cut the cash rate twice

A close inspection of Reserve Bank Board minutes, the implications of US Fed moves, the way unemployment is measured and how monetary policy is set add up to a picture of further rate cuts.

Floating rate bonds rise in popularity

With US interest rates on the rise and the prospect of Australian rates heading the same way, floating rate bonds have increased in popularity as they allow investors to benefit from increasing rates.

Volatility and reflecting on the inflection

It took Wall Street and equity investors a long time to realise interest rates had gone through an inflection, and the era of the easiest money conditions in a lifetime is now over.

Risks to banks at end of construction boom

Australian banks are vulnerable to a collapse in the local housing market due to an overexposure to high-rise developments, interest-only loans and high loan-to-value ratios. The main uncertainty is the timing.

Is it time for an SMSF rethink on deposits?

Australian bank liquidity regulations are continuing to tighten, adversely affecting access to cash and the ability of SMSFs to earn the same returns from bank deposits as individuals.

Unconventional monetary policy is now conventional

In a recent speech, US Federal Reserve Chair, Janet Yellen signalled that 'unconventional' monetary policy actions by central banks are likely to be 'normal' for many years.

Banks take political heat to preserve margins and deposits

Following the recent cash rate cut, it seemed unusual for banks to then increase their term deposit rates, while only passing on a fraction of the cut to borrowers. What's behind this change in bank strategy?

How to read RBA interest rate decisions

The RBA follows a fairly standard formula when drafting its interest rate announcements each month and a keen observer might detect a change in view before an actual change in interest rates.

Most viewed in recent weeks

House prices surge but falls are common and coming

We tend to forget that house prices often fall. Direct lending controls are more effective than rate rises because macroprudential limits affect the volume of money for housing leaving business rates untouched.

Survey responses on pension eligibility for wealthy homeowners

The survey drew a fantastic 2,000 responses with over 1,000 comments and polar opposite views on what is good policy. Do most people believe the home should be in the age pension asset test, and what do they say?

100 Aussies: five charts on who earns, pays and owns

Any policy decision needs to recognise who is affected by a change. It pays to check the data on who pays taxes, who owns assets and who earns the income to ensure an equitable and efficient outcome.

Three good comments from the pension asset test article

With articles on the pensions assets test read about 40,000 times, 3,500 survey responses and thousands of comments, there was a lot of great reader participation. A few comments added extra insights.

The sorry saga of housing affordability and ownership

It is hard to think of any area of widespread public concern where the same policies have been pursued for so long, in the face of such incontrovertible evidence that they have failed to achieve their objectives.

Two strong themes and companies that will benefit

There are reasons to believe inflation will stay under control, and although we may see a slowing in the global economy, two companies should benefit from the themes of 'Stable Compounders' and 'Structural Winners'.

Sponsors

Alliances

© 2021 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.

Website Development by Master Publisher.