RBA board announcement

A noteworthy change in this week’s RBA Board announcment

- March 22, 2024 3 MIN READ

Reserve Bank Board meeting week and, as expected, official interest rates were kept on hold. But there was an important change in the statement explaining the announcement. The words are now more important than the actual decision. From saying “a further increase in interest rates cannot be ruled out” in September, this week’s statement said… Read more »

Governments need to help fight inflation

Governments need to step up and help the RBA fight inflation

- February 23, 2024 3 MIN READ

Interest rates are a blunt instrument, but governments have more options to help fight inflation. They’re just not using them. The Reserve Bank boss, Michele Bullock, recently said interest rates were a “blunt instrument” when it came to fighting inflation. In other words, the impact of interest rate rises can be a bit of a… Read more »

RBA interest rates

A hefty dose of RBA financial therapy

- February 9, 2024 3 MIN READ

A tumultuous week for finance nerds like me who for years have excitedly marked the first Tuesday of the month in our calendars as “Reserve Bank Board Meeting Day”. This week was the last RBA board meeting on the first Tuesday of the month… the next one will be Tuesday March 19 as the RBA… Read more »

Interest rates on hold

No more rate hikes — but they won’t come down anytime soon

- February 2, 2024 3 MIN READ

For weeks I’ve been pointing toward Wednesday’s December quarter Consumer Price Index (CPI) announcement as being crucial to setting the tone for interest rates this year.  Well, the result was really encouraging and basically signalled the top of this interest rate cycle. The headline CPI rose 0.6 per cent for the December quarter and 4.1… Read more »

Australian households reduce spending

Australian households put the brakes on the economy

- December 8, 2023 3 MIN READ

This week gave us some critical economic signposts. The RBA decided to keep interest rates on hold and the latest economic growth figures were pretty anaemic – without the impact of migration the economy would be in recession.  As expected, at their meeting on Tuesday, the RBA Board decided to keep interest rates on hold… Read more »

Inflation is heading in the right direction

Inflation heading in the right direction at last

- December 1, 2023 2 MIN READ

I’ve said over the last couple of weeks that I reckon the December quarter CPI figure (released on 29 January) will be lower than most people think and that we are at the top of the interest rate cycle. Just as the September CPI surprised everyone by being higher than expected, the December quarter will… Read more »

Impact of inflation on households

Behind the headlines: what rising interest rates really mean

- November 17, 2023 4 MIN READ

The Reserve Bank has been constantly saying that as it monitors the economy for any further need for interest rate increases, apart from inflation its focus is on jobs, household spending and the property market. This week we received key data on all these areas. First up jobs. Unemployment up but job creation still strong… Read more »

The real impact of migration on Australia
Your Life

The real impact of our record migration numbers

- November 10, 2023 2 MIN READ

Over the last couple of months I’ve been talking about the impact of Australia’s record migration levels on the housing and rental markets.  This week I received a fascinating report from CoreLogic’s Head of Research, Eliza Owen, who had five key insights about overseas migration and the housing market: 1. Migrant housing demand skews toward… Read more »

RBA inflation down fast

RBA wants inflation to slow — fast

- October 20, 2023 3 MIN READ

Comments in the latest RBA Board minutes shows they don’t just want inflation to slow, they want it down at a faster rate.  Mark this Wednesday in your calendar. That’s the day the September quarter Consumer Price Index (CPI) will be released at 11.30am. That single figure will determine whether the Reserve Bank lifts interest… Read more »