Bernard Hickey
speaker
288 appearances
1 recordings
1 series
first heard Jul 2026
last heard 12 Jul
Bernard Hickey’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jul 2026 with 1.
Appearances
You know, if you're in your 50s and 60s, it's not like, oh, no, I want to go back to when I was 30 and I want to invest in something different.
or do something too late.
So there's a lot of people who have made the bet, they can't get off.
Yeah, it's a number that we all sort of know and we hear about.
It's on the front pages and the top of the bulletins.
And we think, oh, well, that means my mortgage rate is going to go up or my mortgage rate is going to go down.
But actually, you actually have to think of the official cash rate more as like a wholesale price.
And also it's a price for one particular thing.
It's there for setting the price of floating interest rates.
And so there are some businesses and some people who have mortgages who do see their rates change almost immediately, you know, within a few days.
Sometimes it's a direct contractual, you know, it's X number of basis points above the official cash rate or above the 90-day build rate, which is pretty similar.
But if you're a regular borrower and you've got a house or maybe a rental property or whatever, often you're taking out fixed mortgages and they might be one year, two year, three year, whatever.
And the wholesale rate that that retail rate you're getting, that wholesale rate is a different one from the wholesale official cash rate.
Right.
You're actually – that fixed rate is based on what they call swaps rates, and they are wholesale markets between banks, often involved with international players, and they look to other factors for their pricing, not necessarily what the Reserve Bank has said yesterday.
They'll look to see what international interest rates are doing in the long run.
And often they base themselves off, let's say, the US government bond yield.
So when Donald Trump comes out and says, right, we need to borrow 10% of GDP to launch a war on someone, or my mate asked for a tax cut and I decided to give him one and it's only going to cost 50 billion US dollars and I'll borrow that, that's fine.
But what we've actually seen in the last decade
Two or three years is an increase in that base level of international interest rates, the longer term interest rates.
Showing 121–140 of 288 · page 7 of 15
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