Boat Loans Australia :: News
SHARE

Share this news item!

Inflation's Tug of War: Implications for Rate Hikes in August

Inflation's Tug of War: Implications for Rate Hikes in August

Inflation's Tug of War: Implications for Rate Hikes in August?w=400
With inflation persistently on the rise, Australian homeowners brace for potential interest rate hikes as early as August.
New data from the Australian Bureau of Statistics indicates that inflation remained at a worrisome 4% annually by May 2024, causing increasing concern among economists and the general public alike.

The most dramatic rises were noted in housing (up 5.2%), alcohol and tobacco (up 6.7%), and transportation (up 4.9%). With these figures, inflation has climbed from 3.4% in February to its current position, leading many experts to predict imminent rate adjustments.

This adverse inflation report has prompted many, including Betashares' chief economist David Bassanese, to foresee significant upward pressure on interest rates. "The annual inflation measures have stuck stubbornly around 4%, and this spells trouble for controlling economic stability," noted Bassanese.

For Deutsche Bank, the expectation is clear: a rise in interest rates to around 4.6% is on the cards at the August meeting. Factors compounding the inflation issue include unexpectedly high immigration, significant infrastructure projects, and elevated costs in health and personal services, among others.

  1. Higher costs in housing and basic services.
  2. Continued pressure on energy prices due to climate change.
  3. Failing government policies exacerbating the issue.

Despite weak consumer spending, these entrenched inflation drivers have forced analysts like Bassanese to acknowledge profound systemic failures at both federal and state levels. Adding to these woes, the reluctance of the Reserve Bank of Australia (RBA) to reduce rates anytime soon could see future hikes implemented to combat prolonged inflationary tendencies.

Financial services leader Steve Mickenbecker from Canstar also warned that the RBA is gearing up for potential increases. He argues that with scant indicators of inflation nearing the target range, delaying any hikes would unnecessarily prolong economic pain for borrowers. For instance, a modest rate hike of 0.25% could elevate monthly repayments on a $600,000 home loan by $100.

Furthermore, tax cuts and living cost relief measures set to commence next month may spur further consumer spending, countering the RBA's efforts to restrain household expenses. Moody's Analytics' Harry Murphy Cruise expressed concerns that most household savings will possibly be spent quickly and could intensify inflationary pressures.

Economist Anneke Thompson of CreditorWatch further elaborates that the unprecedented migration levels have driven up demand across non-discretionary services and housing, prompting businesses within these sectors to hike prices. While a slowdown in net migration is anticipated, the impact on broader economic equilibrium will take time.

Meanwhile, KPMG’s chief economist Brendan Rynne believes the RBA may not rush to push rates even higher but predicts they will remain elevated for an extended period. He’s talking about the first significant rate cuts only being feasible by February 2025.

Rynne further correlates Australia's inflation trajectory with the US, which had experienced similar inflation patterns with a slight time lag. Notably, the US saw a biphasic inflation curve - with a resurgence before a subsequent decline, a pattern Australia might similarly follow.

In addressing the broader economic implications, RBA Assistant Governor Chris Kent acknowledged the challenge higher rates pose for families, suggesting that present cash rates are already in restrictive territory. According to Paul Bloxham, HSBC’s chief economist, this assertion aligns with the RBA's wary stance against tightening further while simultaneously achieving economic balance.

Published:Saturday, 29th Jun 2024
Source: Paige Estritori

Share this news item:

Finance News

Uncovering the Impact of Unsolicited Solar Sales on Consumers Uncovering the Impact of Unsolicited Solar Sales on Consumers
04 Jul 2025: Paige Estritori

In a concerning revelation, Australian retiree Christine Hirchfield shares her ordeal with an unsolicited solar installation that turned into a financial nightmare. Despite her initial enthusiasm for cheaper energy bills and a greener home, the project remains incomplete more than a year later. Consumer groups are now advocating for a nationwide prohibition on deceptive sales practices that target vulnerable consumers like Ms Hirchfield. - read more
Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge
03 Jul 2025: Paige Estritori

Australian online retail sales experienced a modest rise in May, as consumers continued to invest in fashion, games, and toys. According to the latest figures from the National Australia Bank, there was a 0.7% increase in online sales for the month, compared to a 1.1% growth in April. Over the past year, Australians have spent approximately $63 billion on online retail purchases. - read more
Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers
03 Jul 2025: Paige Estritori

The starting days of the new financial year bring significant changes for Australian workers, particularly those on minimum wage. As of Tuesday, the minimum wage will rise by 3.5 per cent, increasing hourly earnings to $24.95, or $948 weekly. This adjustment also affects award wages and comes as a response to rising living costs, outpacing current inflation rates. - read more
US Dollar Faces Historic Decline Amid Trump’s Tariff Policies US Dollar Faces Historic Decline Amid Trump’s Tariff Policies
03 Jul 2025: Paige Estritori

The US dollar has experienced an unprecedented decline, marking its worst first-half performance since 1973. Concerns surrounding President Donald Trump's tariff policies have intensified, leading to a substantial drop in the value of the world's primary reserve currency. Specifically, the dollar weakened by 10.7% against a basket of major trading partners' currencies in the first six months of the year, reminiscent of Nixon's era when the dollar was untethered from gold. - read more
Auditor Deregistered After Brite Advisers Collapse Auditor Deregistered After Brite Advisers Collapse
30 Jun 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has deregistered auditor David Makowa, previously of DM Advisory Services, due to his role in the downfall of financial advice firm Brite Advisers. This decision follows Makowa's acceptance of a court-enforceable undertaking in which he agreed to surrender his auditor registration permanently, pledging never to re-apply. - read more
US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns
23 Jun 2025: Paige Estritori

The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more


Boat Loans Articles

Common Mistakes to Avoid When Applying for a Boat Loan Common Mistakes to Avoid When Applying for a Boat Loan
Applying for a boat loan can be an exciting step toward owning your dream vessel, but preparation is key to securing quick approval. A well-prepared application can make all the difference, ensuring you avoid any unnecessary delays and get the best possible loan terms. - read more
The Do's and Don'ts of Applying for a Boat Loan The Do's and Don'ts of Applying for a Boat Loan
Purchasing a boat is an exciting venture, but it usually requires a substantial financial commitment. For many Australians, securing a boat loan is a practical way to make this dream a reality. - read more
Exploring Australia’s Stunning Coastline: The Joys of Boats and Jet Skis During Holidays Exploring Australia’s Stunning Coastline: The Joys of Boats and Jet Skis During Holidays
Australia is home to some of the most breathtaking coastlines in the world. Stretching over 25,000 kilometers, Australia's diverse coastal landscape offers something for everyone, from serene beaches to rugged cliffs and vibrant coral reefs. This vast and beautiful coastline is a treasure waiting to be explored, making it a perfect destination for holidaymakers looking to experience the magic of the sea. - read more
How to Navigate Refinancing Your Boat Loan with Ease in Australia How to Navigate Refinancing Your Boat Loan with Ease in Australia
Refinancing a boat loan can be a strategic financial move, enabling boat owners to reap the benefits of lower interest rates, reduced monthly payments, or shorter loan terms. The concept of refinancing involves replacing your existing loan with a new one, often with more favorable conditions that better suit your current financial situation. - read more
Setting Your Course: Fixed and Variable Rate Boat Loans Explored Setting Your Course: Fixed and Variable Rate Boat Loans Explored
The allure of the open waters is undeniable, and for many Australians, the dream of owning a boat is akin to the ultimate freedom. Whether it's for leisurely sails along the coast, fishing adventures, or simply the joy of the aquatic lifestyle, boats represent an escape from the everyday grind. However, the pursuit of this dream often comes with a significant financial consideration: boat loans. - read more
Tips for Getting Approved for a Boat Loan with Bad Credit Tips for Getting Approved for a Boat Loan with Bad Credit
Having bad credit may make it seem challenging to secure a boat loan, as it can negatively impact your creditworthiness in the eyes of lenders. However, it's not impossible to get approved for a boat loan even with bad credit. - read more
How to Navigate Your Boat Loan Options with a Varied Credit History How to Navigate Your Boat Loan Options with a Varied Credit History
Australia's crystal-clear waters and expansive coastlines make it a haven for maritime enthusiasts. Boating is not just a leisure activity but a way of life for many Australians, with vessels ranging from modest dinghies to luxurious yachts gracing the shorelines. The boating lifestyle in Australia speaks to a culture of adventure, relaxation, and a love for the great outdoors. - read more
How to Get the Most Value for Your Money When Buying a Fishing Boat How to Get the Most Value for Your Money When Buying a Fishing Boat
Investing in a fishing boat can be an exciting and rewarding experience, but it's important to make sure you're getting the most value for your money. There are several key factors to consider when buying a fishing boat, including your specific needs, budget, and financing options. It's also important to research boat brands and negotiate the sale to ensure you're getting a fair price. - read more
Mistakes to Avoid When Applying for Boat Financing in Australia Mistakes to Avoid When Applying for Boat Financing in Australia
When it comes to purchasing a boat, financing plays a vital role for many individuals in Australia. However, applying for boat financing can be a complex process, and making mistakes along the way can lead to significant financial consequences and missed opportunities. - read more
Secured vs Unsecured Boat Loans: What's the Best Choice for Australians? Secured vs Unsecured Boat Loans: What's the Best Choice for Australians?
Australia's vast coastline and picturesque waterways make it a haven for boating enthusiasts. From the thrill of open waters to the serene escapes in hidden bays, owning a boat is a unique way to explore the natural beauty that Australia has to offer. The sense of freedom that comes with having your own vessel is unmatched, and it is a lifestyle many Australians aspire to experience. - read more
Tips for Getting Approved for a Boat Loan with Bad Credit Tips for Getting Approved for a Boat Loan with Bad Credit
Having bad credit may make it seem challenging to secure a boat loan, as it can negatively impact your creditworthiness in the eyes of lenders. However, it's not impossible to get approved for a boat loan even with bad credit. - read more
Why You Should Consider a Specialist Broker for Your Next Australian Boat Purchase Why You Should Consider a Specialist Broker for Your Next Australian Boat Purchase
The allure of the open waters, the thrill of steering your very own vessel, and the prestige of boat ownership are undeniably intoxicating dreams for many. Whether zipping through waves on a swift personal watercraft or unwinding aboard a serene sailboat, purchasing a marine vessel in Australia holds a certain romantic appeal that's hard to resist. - read more


Start Here

START HERE.

Loan Amount:
Postcode:

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase
Annual Percentage Rate (APR):
The annual rate charged for borrowing or earned through an investment, expressed as a percentage.


Quick Links: | Boat Loan Rates | Boat Loan Brokers | Boat Loan Calculators | Boat Loan Quote