Explore the latest developments concerning Bank of America.
Bank of America met with Australian super funds and delivered a warning
What would it take to put the global economy into a tailspin?
The Bank of America, which is worth roughly $US275 billion ($395 billion), and dependent to a degree on functioning financial markets, is asking itself that question.
Low productivity, excess demand, the boom in artificial intelligence and the Iran war are all pushing up the cost of borrowing.
Despite this, interest rate increases have not yet done too much damage to share markets, property prices, or indeed many advanced economies.
But the Bank of America's head of interest rates strategy Mark Cabana has estimated the cost of borrowing, or level of interest rates, that would cause financial damage.
VIDEO: Global banks warn of tipping point for superannuation as interest rates rise
Global banks warns of tipping point for Australian superannuation ar interest rates rise. What would it take to put the global economy into a tailspin? The Bank of America, which is worth roughly $US275 billion, and dependent to a degree on functioning financial markets, is asking itself that question. The answer, it says, lies is Federal Reserve funds rate above 5 per cent.
Global banks warns of tipping point for Australian superannuation ar interest rates rise. What would it take to put the global economy into a tailspin? The Bank of America, which is worth roughly $US275 billion, and dependent to a degree on functioning financial markets, is asking itself that question. The answer, it says, lies is Federal Reserve funds rate above 5 per cent.
NAD Supplements, Supplements with Resveratrol + Vitamin B3, Nad Plus Boost Supplements – Supports Cellular Health
RBA rate relief more than a year away, leaving family budgets squeezed
Interest rates are unlikely to fall for more than a year, piling pressure on the federal government to restrain spending as family budgets stretch to accommodate four interest rate increases since February.
That was the broad view of 37 economists polled for The Australian Financial Review’s quarterly survey, with the Reserve Bank of Australia only expected to begin cutting rates in November next year as the job market weakens.
Gift articles to anyone you choose each month when you subscribe.
For more detailed information, explore updates concerning Bank of America.
