Consumer spending the wildcard in rate hike uncertainty

22 May

Australian consumers have been saving rather than spending and a change in behaviour could complicate matters for the Reserve Bank, keeping interest rates higher for longer. The minutes from the central bank’s May meeting confirmed a rate hike was...[Read More]

Rationale behind RBA’s last cash rate call on show

22 May

Lingering price pressures had the central bank alert and watchful at the last interest rate call and the minutes of the board’s meeting will be combed through for further insights. Slated for release on Tuesday, the minutes from the Reserve...[Read More]

Workers’ wages grow 4.1 per cent, silver lining for RBA

15 May

Workers saw their wages outpace inflation during the first three months of 2024, but a lower-than-expected increase will encourage the Reserve Bank board as they mull their next interest rate move. Wages grew 4.1 per cent annually in the March...[Read More]

Economists warn budget could ‘poke inflationary bear’

15 May

A pitch to bring inflation back to target by as soon as Christmas has been muddied by economists worried about new spending and energy bill relief for all. Forecasts embedded in the Albanese government’s third budget show inflation will go back...[Read More]

Rates on hold but RBA ‘vigilant’ to inflation risks

8 May

Australia’s key interest rate has been left on hold but financially-stretched borrowers are not out of the woods yet. The Reserve Bank of Australia remains “alert and vigilant” to emerging price pressures, including renewed pain at the...[Read More]

Consumer price temperature check key to rates outlook

24 April

Australia’s hotly anticipated quarterly consumer price index will land amid fears inflation progress is stalling in some advanced economies and threatening to delay interest rate cuts. Consecutive months of hotter-than-expected United States...[Read More]

Reserve Bank’s shift to neutral likely to be reinforced

3 April

With less than six weeks to go before the next Reserve Bank of Australia decision on interest rates, borrowers are about to get more signals on what it might do next. The central bank has left the key cash rate unchanged at 4.35 per cent following...[Read More]

Reserve Bank shelves formal rate hike talk

3 April

No other option aside from keeping interest rates on hold was formally entertained at the Reserve Bank of Australia’s last interest rate meeting. The decision to leave interest rates untouched at 4.35 per cent was widely expected at the meeting...[Read More]

Inflation holds steady but services prove stubborn

27 March

The final stretch to bring inflation back to target is proving challenging, based on fresh data, though that is broadly what the Reserve Bank expected. The Australian Bureau of Statistics’ monthly inflation indicator held steady at 3.4 per cent...[Read More]

Rates on hold but RBA ‘not ruling anything in or out’

20 March

The Reserve Bank has left interest rates at 4.35 per cent for the third meeting in a row in an almost universally expected move reflecting inflation that is cooling but still too high. The board came to its decision on Tuesday after two days of...[Read More]

Rate peak to buoy confidence and possibly home prices

20 March

Another month on hold and growing expectations the next interest rate move will be down could add to already robust housing demand and keep pressure on home prices. Following the Reserve Bank’s widely expected decision to leave interest rates...[Read More]

Swifties boost spending

13 March

The Australian economy got a leg up from Taylor Swift concerts but the much-anticipated visit was not enough to counter penny pinching elsewhere. Spending as tracked by Commonwealth Bank has been generally subdued and fell 0.3 per cent over the...[Read More]

Economy hit by rates and inflation

6 March

Australia’s economy limped across the 2023 finish line as financially-strained households pinched pennies and prioritised essentials over nice-to-haves. The economy expanded 0.2 per cent in the three months to December – broadly in line with...[Read More]

Consumer price index steady at 3.4 per cent in January

28 February

Australia’s consumer price index held steady at 3.4 per cent in the 12 months to January, coming in below expectations. The index had been widely expected to rise by 3.6 per cent on an annual basis, when the data was released by the Australian...[Read More]

Consumers, productivity still cloud outlook: RBA

21 February

Stubbornly high inflation, a failure to revive productivity growth and a deeper consumption slowdown are all live possibilities keeping the Reserve Bank on guard. Cutting interest rates was not discussed at the February cash rate meeting, with board...[Read More]