Escalating Middle East tensions pose the threat of renewed cost of living pressure just as the Reserve Bank turns attention to easing interest rates and boosting the sluggish economy.
Matt Mckenzie
A combination of lower interest rates, growing confidence and initiatives like the first-home guarantee scheme have led to a surge in first home buyers, with WA recording the second-biggest increase.
Cheyanne Enciso
Surging government borrowing across the world could push up interest rates and investors have been told to brace for repeats of the April volatility sparked by Donald Trump’s trade chaos.
The Big Four bank has made its prediction on when mortgage-holders are likely to get the next rate cut, and it defies market expectations.
Australia’s economy is stuck in the slow lane as families and businesses remain reluctant to splash cash, just as the binge of government spending unwinds.
Australia has been among the worst hit developed nations by a global slowdown in business investment that will damage growth, international experts at the OECD say.
The RBA picked the ‘path of least regret’ through global trade instability by cutting interest rates in May, minutes from the meeting show.
Australian families are expected to save almost $10bn a year from the RBA’s two interest rate cuts but economists are warning the housing market will be supercharged by further relief.
Traders are still betting on the Reserve Bank to cut rates at its next meeting, but rising housing costs and low productivity growth will worry the RBA board.
Jacob Shteyman
The latest reading on inflation has defied predictions from economists of a fall deeper into the Reserve Bank’s comfort zone.
Daniel Newell
Former RBA governor Philip Lowe is worried Australia’s prosperity is at risk from political failures to fix productivity and the global move away from free trade.
In cutting rates by 0.25 percentage points last week, the Reserve’s board warned “geopolitical uncertainties remain pronounced”, which is code for “Donald still be cray”.
Ben Harvey
There is ‘striking confidence’ in China that the country can win a trade war with the United States, Reserve Bank deputy boss Andrew Hauser has revealed.
Wesfarmers boss Rob Scott says this week’s rate cut is welcome news but it will take time to seep into consumer spending, warning many low income workers are ‘still doing it tough’.
A new survey has found 60 per cent of mortgage holders would still be battling after banks pass on the 0.25 per cent rate cut.
Kim Macdonald
Analysts have warned the Reserve Bank may wait before pulling the trigger on another interest rate cut, despite governor Michele Bullock’s soft tone on Tuesday sparking expectations of rapid-fire relief.
Leeming mother-of-two Lorie Langley has welcomed the Reserve Bank’s second interest rate cut this year, saying the savings will be used to help pay off her mortgage faster.
The Reserve Bank is expecting inflation will remain under control for the next two years but there’s a new economic threat looming.
It’s a cut! A second dose of mortgage relief is on the way for Aussie borrowers after the Reserve Bank lowered interest rates 0.25 percentage points.
The Reserve Bank has cut interest rates, providing relief for millions of Aussie homeowners. Recap their decision here.
David Johns
Finally, inflation appears sustainably within the RBA’s target band of between 2 and 3 per cent, without sacrificing the jobs of too many Australians in the process.
Editorial
The Reserve Bank is widely tipped to cut interest rates on Tuesday despite an easing of trade war tensions and strong jobs growth.
An exceptional month of Australian jobs growth has sparked warnings of an inflation bounce, but an interest rate cut next week is still seen as highly likely.
Australia’s consumer sentiment recovered slightly in May following Anthony Albanese’s landslide election win and as prospects of future interest rate cuts become more likely.
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