Reserve Bank maintains rates freeze. So is the hiking cycle over? by Peter Ryan

The Reserve Bank looks likely to maintain a long interest rates freeze and holding the cash rate at 4.1pc yesterday. But some economists think incoming RBA governor Michele Bullock might be forced to hike again if inflation flares up again.

Reporter: Senior Business Correspondent Peter Ryan

Featured: Stephen Koukoulas, economist

The Reserve Bank board has defied a slim majority of market economists by continuing the cash rate freeze at 4.1pc. The question now is whether this is the end the RBA's aggressive hiking cycle.

Later today, the board of the Reserve Bank will reveal whether we've seen the last of it's aggresssive interest rate rises that have been smashing households.

Expectations are that the "pause" delivered in July will continue .. the RBA board satisified that inflation has peaked and is now steadily falling.

But will the good news be enough to prevent one major two more rate hikes?

Will they or won't they?

That's the question confronting rate-hike weary borrowers as the Reserve Bank considers whether to continue the rates "freeze" at tomorrow's critical board meeting.

But even if inflation is slowing and retail sales have gone negative .. that might not be enough for the RBA to hold back from one more rate rise.

There's been a massive rise in consumer complaints about financial firms fueled by pressures from rising interest rates and high inflation. The Australian Financial Complaints Authority received a record 97,000 disputes over the past year many relating to banks, insurance companies, buy-now-pay-later products and the daily scourge of scams from cybercrimals. I speak with AFCA chief executive and chief Ombudsman David Locke who says financial firms need to do a better job in dealing with distressed customers.

Reporter: Senior Business Correspondent Peter Ryan

Featured: David Locke, chief executive, Austrlaian Financial Complaints Authority

Inflation might be falling in the United States, but that's not good enough for the US Federal Reserve which has once again raised interest rates this morning.

While Fed chairman Jerome Powell is now downplaying the risks of a recession, he's conceded that unemployment in the US will have to rise as a big social cost in getting inflation lower.

Consumer prices rose 0.8 per cent over the three months to June, making a 6 per cent increase over the past year. The result is slightly lower than most economists were expecting and reduces the chances of a Reserve Bank interest rate rise next Tuesday. Analysis from ABC's Peter Ryan.

Reporter: Senior Business Correspondent Peter Ryan

Featured:

The outlook for another interest rate is hanging on a key inflation update out today. Any evidence that the pace of inflation picked up in the most recent quarter could give the Reserve Bank little choice but to press the rates button again.

Reporter: Senior Business Correspondent Peter Ryan

Featured:

One of the world's biggest investment firms is at the centre of landmark "greenwashing" allegations being levelled by the corporate regulator. ASIC is accusing Vanguard Investments Australia of misleading clients about an environmentally-conscious fund that instead left investors exposed to fossil fuel investments and links to oil and gas exploration. ASIC deputy chair Sarah Court speaks to ABC's Peter Ryan.

Reporter: Senior Business Correspondent Peter Ryan

Featured: Sarah Court, ASIC deputy chair

Keywords: podcast,