Tuesday’s interest rate decision saw the RBA leave the official cash rate on hold at 3.60%. In its media statement accompanying the decision, the RBA noted that the recent rise in CPI inflation had been partly driven by temporary factors, though the extent was uncertain. The RBA also noted that Australia’s labour market remains “a
The latest Chinese inflation numbers were slightly higher than expected which has seen the potential for a BOC RRR cut next year move lower, also pushing mainland shares down as well. All other Asian markets are in the red as well with the risk complex awaiting tonight’s FOMC meeting to see what is in store
The Reserve Bank of New Zealand has delivered 3.25% of interest rate cuts since July 2024. This reduction in the OCR has delivered a corresponding decline in new mortgage rates to pre-pandemic norms: Normally, such a sharp reduction in mortgage rates would result in a lift in homebuyer demand and prices. However, as illustrated below
From the Market Ear: Stuck SPX remains stuck inside the range that has been in place since September. Bull flag and a break out, or a double top? We aren’t getting excited until we break out of the range. Until then, treat this as a mean-reverting market. Stability… …at these levels, but dealers turn short
When Australia closed the book on the 20th century, the median home at a national level could be purchased by a household with a median household income. The typical mortgage consumed 25% of gross income, assuming they had the cash for a 20% deposit, stamp duty, and other transaction costs. This marked the last ‘hurrah’
The ABC’s Ian Verrender neatly summarised the forms of East Coast gas reservation being considered by the Albanese government as it attempts to overcome a pending supply shortfall: Those in the know say the federal government is considering two options. The first option is that each of the exporters must supply a certain quantity of
IEEFA wants Albo to waste another $1bn on green iron. As Australia pours $1 billion into its Green Iron Investment Fund, it can learn important lessons from the US and EU, where several low-emissions steel projects backed by capital grants were subsequently cancelled or delayed. Projects with a “gas first, green hydrogen later” approach struggled,
China printed a bit of inflation in October, but it was pretty obviously seasonal. There is bugger all momentum in prices. The PPI was worse, though it also fell over the line in the month. Anti-involution has dented deflation but it is temporary. Bloomberg has some great charts on the great deflation. Rise of
It is time to shutter the ABC. Flag burning should be criminalised, immigration should be capped based on housing supply, and the ABC and SBS should be sold and replaced by a taxpayer-funded broadcaster only for regional and outback Australia, according to resolutions to be debated at the Liberal National Party’s state council this weekend.
Last week, I reported an AFR analysis of 16 financial reports from federal agencies, which revealed that 14 had unbudgeted increases in staff expenses totaling $841 million. Budget watcher Chris Richardson warned that the wage blowout could threaten the federal budget’s March forecast of a $42 billion deficit for this financial year, as could the billions