Why the RBA bought 3 year Bonds to Lower your Mortgage Expenses
Published at : November 28, 2021
In times of trouble, the RBA will not let it be and instead will help lower your mortgage repayments. I discuss how the RBA affects your future, and specifically how the RBA helped lower mortgage rates for people who fixed their mortgages for 3 years. But how much control does the RBA have over interest rates and the yield curve? Watch to find out!
Enjoy!
Timecodes:
00:00 Why are banks lowering their variable mortgage rates?
01:20 Something cheeky is going on with the banks
03:15 The RBA and its bond buying programme
04:19 Explaining the RBA and how it's 'walking' the Yield Curve
07:40 Why interest rates in Australia are expected to rise from 2022
09:11 But how much control does the RBA have over interest rates???
Sources:
1. https://www.rba.gov.au/publications/bulletin/2017/sep/1.html
2. https://www.abc.net.au/news/2021-10-29/reserve-bank-waves-white-flag-on-bond-yield-target/100579858
3. https://www.rba.gov.au/publications/bulletin/2021/jun/an-initial-assessment-of-the-reserve-banks-bond-purchase-program.html
4. https://www.homeloanexperts.com.au/fixed-rate-loans/should-i-fix-my-home-loan/
5. https://www.pepper.com.au/lending/help-centre/getting-started/to-fix-or-not-to-fix-the-pros-and-cons-of-fixed-vs-variable-rate-home-loans
6. https://www.rba.gov.au/education/resources/explainers/bonds-and-the-yield-curve.html
7. https://www.afr.com/companies/financial-services/bond-market-calls-time-on-fixed-rate-home-loan-party-20211024-p592mz
8. https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html
Bibliography:
https://www.ft.com/content/bef0e0f5-6273-4ff0-aba6-d31bda59de21
https://www.ft.com/content/cfc954f0-df9a-473d-a56b-429b95297cc2
I am focused on the story of economics and making it a fun, engaging and relevant subject to learn. I aim my videos at a general audience, although occasionally I create more technical videos. I focus on showing why it's such an important subject and all of the common and some not-so-common misconceptions people have, but most importantly I explore why people can have these misconceptions. I am studying a Masters of Public Policy and as I learn more, I will be adding that knowledge to my videos.
I don't subscribe to any particular 'school' as such, but mostly what is considered orthodox, which I will occasionally vigorously defend. I also let the evidence take me to the conclusions.
Inquiries: petartankosic-gajic@live.com.au
Join me on Discord: Petar Economics#6278
My second channel: Petar's Writing
Join me on Twitter @gajictankosic
Check out my friend's eBay store: https://www.ebay.com.au/str/aqua222010
Enjoy!
Timecodes:
00:00 Why are banks lowering their variable mortgage rates?
01:20 Something cheeky is going on with the banks
03:15 The RBA and its bond buying programme
04:19 Explaining the RBA and how it's 'walking' the Yield Curve
07:40 Why interest rates in Australia are expected to rise from 2022
09:11 But how much control does the RBA have over interest rates???
Sources:
1. https://www.rba.gov.au/publications/bulletin/2017/sep/1.html
2. https://www.abc.net.au/news/2021-10-29/reserve-bank-waves-white-flag-on-bond-yield-target/100579858
3. https://www.rba.gov.au/publications/bulletin/2021/jun/an-initial-assessment-of-the-reserve-banks-bond-purchase-program.html
4. https://www.homeloanexperts.com.au/fixed-rate-loans/should-i-fix-my-home-loan/
5. https://www.pepper.com.au/lending/help-centre/getting-started/to-fix-or-not-to-fix-the-pros-and-cons-of-fixed-vs-variable-rate-home-loans
6. https://www.rba.gov.au/education/resources/explainers/bonds-and-the-yield-curve.html
7. https://www.afr.com/companies/financial-services/bond-market-calls-time-on-fixed-rate-home-loan-party-20211024-p592mz
8. https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html
Bibliography:
https://www.ft.com/content/bef0e0f5-6273-4ff0-aba6-d31bda59de21
https://www.ft.com/content/cfc954f0-df9a-473d-a56b-429b95297cc2
I am focused on the story of economics and making it a fun, engaging and relevant subject to learn. I aim my videos at a general audience, although occasionally I create more technical videos. I focus on showing why it's such an important subject and all of the common and some not-so-common misconceptions people have, but most importantly I explore why people can have these misconceptions. I am studying a Masters of Public Policy and as I learn more, I will be adding that knowledge to my videos.
I don't subscribe to any particular 'school' as such, but mostly what is considered orthodox, which I will occasionally vigorously defend. I also let the evidence take me to the conclusions.
Inquiries: petartankosic-gajic@live.com.au
Join me on Discord: Petar Economics#6278
My second channel: Petar's Writing
Join me on Twitter @gajictankosic
Check out my friend's eBay store: https://www.ebay.com.au/str/aqua222010
economicsmacroeconomicseconomics simplified