Higher for longer: why low rates are relics of the past
MORTGAGE holders can expect interest rates to stay higher for longer, whether the Reserve Bank raises them again on Melbourne Cup Day. The RBA has been warning that the intense competition for global capital among artificial intelligence and data centre companies is pushing up its estimate of how high interest rates need to go to keep inflation sustainably low – otherwise known as the neutral interest rate. Christopher Kent, the central bank’s assistant governor for financial markets, said on Monday that there was reasonable evidence that neutral rates were rising both in Au