Investors may have certainty that US rate cuts are starting in September, but it’s unclear what economic conditions those cuts will bring. Investors are closely watching every data release and communication from central banks for a sense of clarity. The VIX Index has hit one month high. Global strategist at Rabobank, Michael Every says investors … Read more
Economists say the latest inflation data takes pressure off the Reserve economic organization to hike loan charge rates in August. The annual headline figure came in as expected at 3-point-8 per cent but the quarterly underlying measure eased for the sixth quarter in a row, suggesting inflation is still trending down. Rental prices rose by … Read more
The RBA Governor Michelle Bullock has flagged the board won’t hesitate to increase finance charge rates, but critics say another hike would hazard crashing the economy. The Australia Institute Executive Director Richard Denniss says increasing finance charge rates is “dangerously unnecessary” and it’s more important to avoid a recession than get inflation down to the … Read more
A series of consumer confidence and company surveys reveal Australians aren’t feeling very optimistic about the economy. The latest Westpac survey found the sentiment dip was centred around family finances, while there’s early evidence the stage three duty cuts have done little to decrease fears of another borrowing charge rate hike. Alongside that, job ads … Read more
The lender of Canada has become the first G7 country to cut its key policy finance charge rate. The country’s Central lender moved the cash rate down to 4.75 per cent from five per cent, even though inflation remains outside the target range. It has many wondering when other central banks will follow. The European … Read more
Australia’s economy barely grew in the first three months of 2024 and outside of the pandemic, it expanded at the slowest annual rate since the 1990s recession. GDP per capita fell for the fifth consecutive quarter but record population expansion is keeping Australia out of recession. The Treasurer Jim Chalmers blamed the weak expansion on … Read more
The Fair Work Commission has announced Australia’s minimum wage and award wages will increase by 3.75 per cent, taking the national minimum wage to $24.10 per hour or $915.91 per week from July 1. Overall, the FWC estimates the increase to minimum and award wages will affect “about a quarter of all Australian employees”. In … Read more
Real estate agents say higher borrowing charge rates are putting off some home buyers. It comes as the Reserve lender left the cash rate on hold at 4.35 per cent. RBA governor Michele Bullock says financial conditions are “particularly restrictive” on households at the moment, and she hopes she doesn’t have to raise rates again. … Read more
A new report by KPMG says Australia’s fiscal and monetary policies are working against each other when it comes to bringing inflation back to target. The report author and KPMG chief economist Brendan Rynne says the Reserve money institution is stomping on the breaks while the government is pressing the accelerator. The report comes after … Read more
Inflation in the March quarter has come in higher than expected, with prices rising by 1 per cent. Annual inflation slowed to 3.6 per cent in the year to March, down from 4.1 per cent in the 12 months to December. Subscribe: http://ab.co/1svxLVE Read more here: https://www.abc.net.au/news/2024-04-24/inflation-consumer-price-index-march-quarter-finance charge-rates-hecs/103757332 Forecasters are now pushing back their finance … Read more