How high will the RBA’s cash rate get and how quickly? That’s one of the questions at the forefront of many people in the property development’s minds. With five consecutive rate hikes totalling 225bps, the RBA has moved at an unprecedented and record pace to combat spiralling inflation. RBA governor, Philip Lowe, now expects inflation […]
The reason why Bank debt is getting more expensive, whilst leverage is reducing, and covenants are increasing!
The underlying reason why the banks are getting more and more expensive in providing the same level of debt is clearly evidenced in the below chart. The increased capital ratios are being driven by the…
RBA cuts Cash Rate by 25bps to record low of 1.25%
The June policy meeting by the RBA, saw Governor Lowe cut rates to a record low of 1.25%, a cut of 25bps.The last movement in the cash rate was August 2016. According to the RBA, the board made the decision “to support employment growth and provide greater confidence that inflation …