australian cash rate reaches 18 year peak

[zevapaparazzo 2,721]

brace for impact in 2027 everyone

the cash rate is the interest rate charged on unsecured overnight loans between commercial banks in the money market, and the reserve bank of australia raised its cash rate target by 25 bps to 4.85% from 4.60% in a 6-3 majority decision, effective november 6 2026. although she says that a recession is not currently in sight, rba governor michele bullock says that “it is going to make people feel like it’s a recession because they feel poorer. their spending can’t grow very quickly, because their incomes aren’t growing very quickly". but apparently economists say it’s a 50/50 coin toss on whether we’re headed for a recession, so somebody’s lying. maybe i’m lying. i don’t know. the cash rate has not been this high in australia since late 2008, and this is our 5th rate lift of 2026. current treasurer jim chalmers says the war in the middle east is to be blamed: "disastrous for Australians, for cost of living, and … around the world", adding that the conflict is "absolutely turbocharging" inflation. liberal shadow treasurer tim wilson says that domestic government spending is to be blamed. prime minister anthony albanese says economic difficulties are "not going to be solved overnight" but that the government would "continue to do everything we can to shield australians from the worst of the impact." according to the guardian, roughly a third of voters believe that government spending is the top cause for rising cost of living, and only 24% said overseas events like the global oil shock was the main reason, and 19% said it was supermarket price gouging

is chalmers scapegoating? is the government really doing all they can to help us? are we all gonna die? is p**line gonna milk this? is albanese a hunty?

maybe, maybe not, i'm not an economist

Spoiler

https://www.afr.com/policy/economy/feels-like-a-recession-bullock-20261103-p61avm

https://www.theguardian.com/australia-news/2026/oct/28/jim-chalmers-is-blaming-australias-accelerating-inflation-on-trump-but-voters-arent-buying-it

https://tradingeconomics.com/australia/interest-rate

https://www.abc.net.au/news/2026-10-06/recession-leads-to-high-unemployment-pain-not-evenly-shared/107230632

 

[Economy 53,391]

Countries all around the world are hiking

 

Thanks Donald Trump for all the inflation

[Bebe 17,296]

It’s a combination of the global oil shock and price gouging by the Woolworths/Coles duopoly. Proposals like the Greens’ “Fair Go Grocers” are the types of solutions worth taking seriously, even if the proposed discounts are a bit… ambitious.

It’s clearly not perfect. I’d much rather see an explicitly subsidised public supermarket that genuinely lowers household costs than a nominally self-funding one that requires ongoing bailouts because its original costings were unrealistic.

I still think solutions like public supermarkets are worth pushing for. They’re something that could give Australia much greater control over its domestic economy and cost of living as a middle power, even as the world’s superpowers use their military might to **** around with the global economy.

[Main Pop Girl 137]

The fact that nine people can make this decision that is going to affect tens of millions of lives is so stupid. Eat the rich

[Economy 53,391]

8 hours ago, Main Pop Girl said:

The fact that nine people can make this decision that is going to affect tens of millions of lives is so stupid. Eat the rich

Central Bank commitee members are not necessairily ultra wealthy. For example US Fed Chair Ben Bernanke got his own mortgage refinance denied by his personal bank

 

Anyway, someone has to make a decision. These rates are part of a dynamic market and need to move swiftly. U cant have rate decisions be in limbo and take forever like stuff in regular politics does

 

Theres a reason when these institutions were made, they were made to be decisive seperate from the regular government parliaments (or houses etc whatever a Nations system uses), and that PMs and Presidents dont get to determine rates and have politics taint the decisions. Even Trump who over steps on everything has been unable to make the Fed lower rates to the 1% he wants

Edited Thursday at 01:45 PM by Economy