The media release accompanying the Reserve Bank of Australia’s (RBA) 0.25% cut to the official cash rate (OCR) on Tuesday was a fairly vanilla affair that took a neutral stance. The release noted that risks to inflation have become “more balanced”, that policy is now “somewhat less restrictive”. The RBA also remained “cautious about the
Last year, former federal Treasury official Stephen Anthony warned that Victoria may need a federal “bailout” due to increasing state debt, which reached $27,729 per person in 2023-24. “Victoria is on a suicide mission to record borrowing, just as global interest rates are about to hit 5%”, Anthony warned. “Potholes can’t get filled, emergency departments
Australian Industry Group’s analysis of data from the Productivity Commission underlines the downturn in the nation’s housing sector. The Ai Group’s report shows that while labour productivity across the economy has increased by 24% over the last decade, this metric has fallen by 14% in relation to overall housing construction over the same period, and
Risk markets in Asia are somewhat mixed in reaction to the flat sessions on Wall Street overnight with the Friday night cut by ratings agency Moody on US debt still reveberating, particularly within bond markets. The Trump regime is still failing to make deals with Japan which is seeing further strength in Yen while today’s
As widely expected by financial markets and economists, the Reserve Bank of Australia (RBA) lowered the official cash rate (OCR) by 0.25% to 3.85%. In coming to its decision, the statement noted that “inflation continues to moderate”, with “annual trimmed mean inflation (2.9%) was below 3% for the first time since 2021 and headline inflation
Treasurer Jim Chalmers has not ruled out extending the federal government’s $6.8 billion energy rebates again. It was originally meant to expire in mid-2025, but has been extended for another six months. “From budget to budget, we see if we can do more”, Chalmers has said. Some members of Prime Minister Anthony Albanese’s Economic Inclusion
Steel sagged while iron ore firmed. April output for steel fell back to earth. But it is still largely EAF that is pancaked, protecting iron ore. The property bust absorbs more long steel which was EAF focused. China is never going decarbonise steel at this rate.
Australia faces an extended period of Labor Party rule following the collapse of the federal Coalition. National’s leader David Littleproud today announced that the party has separated from the Liberal Party for the upcoming federal election. Littleproud said that he and incoming Liberal leader Sussan Ley tried unsuccessfully to reach an agreement: “This morning after
DXY sagged as stocks came off. AUD up. The trend is intact. Lead boots give you wings. Is gold setting up for another run? Metals growth no bueno. Miners meh. EM meh. Junk OK. Yield relief. Stocks BTFD. When the risk bid comes, AUD is the world’s most loved currency. This is the complete opposite
First it was China, now it is Japan. IEEFA. As both Eastern and Western Australia face gas shortfalls, Japan is onselling vast volumes of Australian LNG at a handsome profit. In-depth analysis of LNG shipment and contract data shows Japanese companies are lucratively onselling about half as much as they import from Australia. Last year