Ross Greenwood RBA will they or won't they

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Episode Transcript

Speaker 1 (00:00):
You've known for nine is what people are talking about.

Speaker 2 (00:04):
The RBA about to make an announcement this afternoon Money
and Ross Greenwood sky On News Business editor joins us,
can you tell us what it's all about?

Speaker 1 (00:12):
Ross? Yeah, Basically, the Reserve banks are making its decision
like it does now what nine times a year, It'll
be on hold. It's not going to do anything today.
The real issue now that might concern a lot of
people is because inflation last week came in high and expected,
and there's some signs there that maybe inflation isn't yet dead.

(00:32):
A lot of people would be thinking from here, there's
three more interest rate cuts coming. It might not be
that many. In fact, you might not even see an
interest rate cut this year, depending on what happens, because
there's another inflation number, the more important one that comes
out late October, and that one really is the key
to figuring out whether there's going to be a lot
more interest rate cuts this year and going into next year,

(00:55):
or whether, in fact, maybe we hit one in February
and that's pretty much it for the time being. So
it just pans out that really inflation is not yet dead.
People are now out and spending again. And that starts
to naturally push prices up, and so really in some
way is you're going to almost temper your expectations that
there are going to be sort of significantly lower interest

(01:16):
rates from here.

Speaker 2 (01:17):
That's good news, you know, especially for young people who
are trying to get into the housing property market or
anything like that.

Speaker 1 (01:22):
Right, yeah, maybe. But the problem here I'm going to
tell you is a lot of investors in particular have
jumped into the property markets in anticipation of these interest
rate cups coming and so as a result, in most
places in Australia, probably not so much in Melbourne, but
in most other parts of Australia, home prices have been
relatively strong, and so they've actually started to rise, and

(01:45):
that obviously is not good for those first time byes.
A lot of those people will be tempted by the
government scheme now where they're basically underwright their loan for
their borrower if they've only got a five percent deposits.
So that again is giving a lot of people a
bit of i say, an opportunity to be able to
get into the market right now. So the worst thing
you'd really want to see from here is, you know,

(02:06):
a lot of people losing their jobs or the economy
suddenly turning south. It doesn't look like that, but the
fact of the matter is you've got to sort of
safeguard yourself at all stages and just make certain you've
got control of those debts as well.

Speaker 2 (02:17):
All right, thank you, thank you, Ross Greenwood.

Speaker 1 (02:19):
Have you no problems?

Speaker 2 (02:20):
Yes, Sky News Business Editor Ross Greenwood. That's what people
are talking about.