A Yikes-Worthy Interest Rate Prediction
Phil O’Donaghoe, of Deutsche Bank Australia, believes that the Reserve Bank of Australia (RBA) isn’t done hiking up interest rates. In fact, O’Donaghoe believes that they’ll increase it four times by August of this year.
This senior economist said, “While the RBA will likely move more slowly in 2023 than it did in 2022, we now expect four more 25 basis point hikes this year: 25 basis points in each of February and March, and 25 basis points each at the May and August meetings.”
O’Donaghoe is making this interest rate prediction for a number of reasons. First off, Australian households spent a lot over the Christmas period, which increased the demand and raised the prices of some goods. Secondly, some of these prices haven’t dropped enough this year.
As O’Donaghoe said, “The RBA needs to see household consumption slowing a lot to get inflation back to target. I don’t think we are going to see that.”
If O’Donaghoe’s interest rate prediction is correct, then an individual with a $750,000 mortgage would have to pay an additional $480 each month. Which is a tonne considering the cost of living crisis that we’re in.
It’s probably going to get worse before it gets better, my pals. Sorry.
What Australia and France Are Promising Ukraine
In 2021, the relationship between Australia and France was severely damaged. This is because the Morrison Government backpedalled on a deal to purchase French submarines, instead opting for American or United Kingdom ones. This skedaddle was because Australia, America, and the United Kingdom teamed up to create the Aukus partnership.
However, in 2023, Australia and France are healing their damaged relationships. They’re doing this by collaborating to manufacture and supply Ukraine with thousands of artillery shells. These shells will be used by Ukraine to defend against Russia’s illegal invasion.
“We wanted to act together as a statement of how importantly Australia and France regard the support of Ukraine in the current conflict. We wanted to make it really clear that Australia and France stand together in support of Ukraine in the face of the aggression from Russia,” said Richard Marles, our Deputy Prime Minister and Defence Minister.
As of January 31, the brutal invasion of Ukraine has been happening for 341 days.
The Lismore Cat That Returned Home
In some delightful news, a 92-year-old named Valerie Axtens is overjoyed that her cat Mendelson returned home. Mendelson disappeared from her Lismore home around a month after last year’s devastating floods.
“I was absolutely amazed and totally delighted,” said Axtens.
“Almost shocked to think that he had survived, it was unbelievable news. Goodness knows where he’s been, but whoever was looking after him was very kind, and they deserve a medal.”