Australia news LIVE: RBA warns first home buyers of more interest rate rises; NSW, ACT teacher strike set for June 30
Key posts
- Opinion: Why interest rates are going up, and won’t be coming down
- NSW teacher strike about politics, not pay: Kean
- Wall Street rally sets up the ASX for more gains; Bitcoin rises
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Opinion: Why interest rates are going up, and won’t be coming down
It’s time we had a serious talk about interest rates. And, while we’re at it, inflation. Someone in my job knows it’s time to talk turkey when the man in charge of rates, Reserve Bank governor Dr Philip Lowe, decides to go on the ABC’s 7.30 program to talk about both.
There’s much to talk about. Why are interest rates of such interest to so many (sorry)? Why do some people hate them going up and some love it? How does interest rates and the inflation rate fit together? Why do central banks such as our Reserve keep moving them up and down? When rates go up, they normally come back down – so why haven’t they this time?
Philip Lowe expects the inflation rate to reach 7 per cent by the end of this year.Credit:Louie Douvis
Starting with the basics, interest is the price or fee that someone who wants to borrow money for a period has to pay to someone who has money they’re prepared to lend – for a fee.
Legally, the “person” you’ve borrowed from is usually a bank, while the person with savings to lend deposits them with a bank. But economists see banks as just “intermediaries” that bring borrowers on one side together with ordinary savers on the other.
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NSW teacher strike about politics, not pay: Kean
NSW Treasurer Matt Kean has described the teacher strike, proposed for next Friday, as being about “politics and not pay”.
Public and independent teachers are both planning to strike after receiving a 3 per cent pay rise offer from the state government, an offer well below inflation.
NSW Treasurer Matt Kean heads into parliament to deliver the budget.Credit:Janie Barrett
“What I would say is that we’ve given one of the most generous public sector pay increases anywhere in the country,” Kean told Today.
“Our 3 per cent pay increase is far more than the Labor government’s 1.5 per cent pay increase for public servants down in Victoria.
“So, the same unions complaining about our generous payrise up here in NSW and protesting aren’t marching in the streets down in Victoria.
“Which shows this is all about politics. And nothing to do with policy or pay.”
Wall Street rally sets up the ASX for more gains; Bitcoin rises
Stocks rose broadly on Wall Street on Tuesday in New York, clawing back some of the ground they lost in their worst weekly drop since the beginning of the pandemic.
In late trade, the S&P 500 is 2.7 per cent higher, the Dow Jones has added 2.5 per cent and the Nasdaq is up 2.9 per cent in the first trading day of the week on Wall Street. The Australian sharemarket is set to open higher, with futures at 5.04am AEST pointing to a rise of 43 points, or 0.7 per cent, at the open. On Tuesday, the ASX stopped its losing streak with a 1.4 per cent jump.
Wall Street has kicked off the week with strong gains.Credit:AP
Technology stocks had some of the strongest gains. Apple rose 3.3 per cent and Microsoft rose 2.3 per cent.
Retailers, health care companies and banks also made solid gains. Kellogg rose 2.5 per cent after the maker of Frosted Flakes and Rice Krispies said it would split into three companies. Spirit Airlines jumped 7.9 per cent after JetBlue sweetened its buyout offer for the budget airline.
AP
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Good morning – here are your early headlines
G’day everyone. It’s Roy Ward and I’ll be tapping the keys for our live blog for Wednesday, June 22 2022.
Thanks so much for joining us and please feel free to leave a comment on the blog at any time.
Here are some of the headlines as we start today:
Industry Minister Ed Husic puts gas exporters on notice
Big-four bank mortgage market share raided as refinancing booms
Victoria brings Nazi swastika ban forward by six months
Weather bureau declares La Nina over but wet conditions to persist
Why interest rates are going up, and won’t be coming down
Wall Street rally sets up the ASX for more gains; Bitcoin rises
‘Abject failure’: Police made ‘terrible’ decisions during Uvalde shooting, official says
Please enjoy the day to come.
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