The Rate Debate

Everyone loves a good housing story and it’s looking like 2021 could become a best seller. But at what cost? According to the numbers, we’re still in an economic hole, and with immigration down 80% and the government’s income support program about to end, are we setting ourselves up for a down fall? Darren Langer and Chris Rands examine the factors influencing the market and reveal their expectations for house prices.

If anyone questioned the power of low interest rates to drive house prices in Australia, they only need look back at 2020. Despite COVID-19, the recession, high unemployment and stagnant wages growth, house prices in Australia stood firm. Find out why Darren Langer and Chris Rands believe house prices are set to climb and why a commodity boom could mark the beginning of an inflation run. 

If the RBA cutting rates is the entrée for markets this week, then the outcome of the US election is the main course and dessert rolled into one. Tune in to hear Darren Langer and Chris Rands dissect the big picture for global markets and find out why fixed income makes so much sense right now—even with historically low rates.

Despite some industry heavyweights predicting a rate cut, the RBA kept rates on hold for October. What three reasons do Darren Langer and Chris Rands give that could explain the RBA’s decision? And could Donald Trump’s health really impact markets? Darren and Chris examine these topics and more in episode 10 of The Rate Debate.

Over the past few weeks, the RBA has started to change its narrative, suggesting that while negative rates are extremely unlikely, they’re not off the table. They’ve also hinted that a new bond buying program could be on the cards. Is the RBA just posturing or is change afoot? Darren Langer and Chris Rands examine these topics and more in episode 9 of The Rate Debate.

With Aussie bonds in high demand across the world, a growing demand for a more aggressive fiscal response from the Australian government, and a rise in COVID-19 cases in Victoria and NSW, is Australia ready for more monetary stimulus? Darren and Chris answer this question and more in episode eight of The Rate Debate. 

Is the RBA too concerned with front end rates that are aimed at helping the banking sector at the expense of the taxpayer who, ultimately, will be picking up the interest cost of higher bond yields? And what will happen to employment and housing once Job Keeper comes to an end or the lockdowns are extended? Darren and Chris go toe-to-toe on these topics and more in this month’s edition of The Rate Debate.

Despite the RBA’s recent monetary and fiscal intervention, a recession still seems to be on the cards. Why is the RBA so unwilling to follow along with more unconventional policy and what are the implications of its ‘play-it-safe’ approach to solving our economic woes? Darren and Chris go looking for answers.

With an expected 10% contraction in GDP, rising unemployment, and inflation at the lowest level we’ve seen in decades, how has COVID-19 impacted credit markets and what’s next for interest rates? 

The RBA has been buying up big, purchasing around $36bn in government and semi-government bonds throughout March. But when is enough, enough and can these efforts really help stave off a recession in Australia? 

Darren and Chris give their view on the current situation.