Economy
Rising inflation breaks streak of real wage growth
18 February
Inflation has outstripped wage growth for the first time in more than two years, despite many workers receiving a recent boost to their pay packet. December quarter wages data released on Wednesday by the Australian Bureau of Statistics showed...[Read More]
‘Too high’: risk to economy forces RBA’s hand on rates
18 February
The risk of persistent inflation over coming months was behind the Reserve Bank’s decision to hike interest rates for the first time since 2023. Minutes from the central bank’s February meeting – where the board decided to lift the cash rate...[Read More]
RBA urges more high-rise amid home-building constraints
18 February
Governments are making the right moves on housing affordability but builders are still finding it “very challenging” to bring on new supply, RBA governor Michele Bullock says. Speaking at a second parliamentary hearing in less than one week, Ms...[Read More]
Signs of softening spending could stay RBA’s rates hand
11 February
A sharp rise in consumption that caught the Reserve Bank off guard and prompted it to hike interest rates might have been more temporary than permanent, fresh data shows. Household spending fell 0.4 per cent in December – the biggest drop since...[Read More]
Private demand under the microscope after rate hike
11 February
Australia’s economy is like a car exceeding the speed limit. Or is it an inflating balloon, squeezing up against the inside of a box? Either way, it’s too hot for the Reserve Bank to handle. Fresh data in the coming week will give the central...[Read More]
Signs point to RBA fine tuning, rather than hike spree
11 February
Fresh figures have allayed fears of a tightening in Australia’s labour market, which should rule out the Reserve Bank returning to a major rate-hiking cycle. Australia’s economy added an estimated 21,000 jobs in January, while wages grew by 0.8...[Read More]
Reserve Bank boss calls on businesses to invest smarter
11 February
The Reserve Bank governor has called on businesses to help lift Australia’s sluggish productivity growth as she tries to bring inflation under control. Facing a string of questions about the government’s role in driving up inflation at a...[Read More]
Borrowed time: rate hike unlikely to be one-and-done
4 February
Borrowers have borne the brunt of a resurgence in inflation, with the Reserve Bank lifting interest rates and leaving the door open for more. The RBA’s monetary policy board lifted the cash rate by 25 basis points to 3.85 per cent in a unanimous...[Read More]
Grim forecasts for Aussie inflation and unemployment
4 February
Australia is set for higher inflation, faster price growth and lower real income growth, the Reserve Bank has predicted in grim new forecasts. Released alongside the central bank’s decision to lift interest rates by 0.25 percentage points on...[Read More]
Rate rise pain all but certain after inflation shock
28 January
All four big banks are warning borrowers to brace for an interest rate hike after core inflation jumped above the Reserve Bank’s forecasts. Economists at Westpac and ANZ on Wednesday dropped their calls for the RBA to stay on hold in February...[Read More]
Healthy jobs market spells rate pain for borrowers
28 January
Analysts are warning mortgage holders an interest rate rise could be just weeks away, after surprisingly strong jobs figures heightened the Reserve Bank of Australia’s concerns about inflation. Forecasters were taken off guard by the resilience of...[Read More]
Key RBA concern eases ahead of crucial inflation print
28 January
Australian firms are noticing an easing in a key business pressure, taking some steam out of calls for the Reserve Bank to hike interest rates. But while capacity utilisation cooled slightly in December, it remains above the long-run average and...[Read More]
IMF warns of AI bubble risk to global growth outlook
21 January
Australia is set for longer, higher inflation, an influential global economic body has remarked, as it warns of a “prolonged correction” if the AI bubble bursts. The International Monetary Fund’s forecast for Australia’s economic growth was...[Read More]
Hot or not? Strong spending complicates rate picture
21 January
Household spending continues to build momentum, heightening expectations of a Reserve Bank rate hike. After official figures released on Monday showed stronger-than-expected spending in November, data from Commonwealth Bank revealed no let-up in...[Read More]
International report to hover over domestic economy
21 January
The health of Australia’s economy is set to be given a global reality check, as the domestic unemployment rate comes under the spotlight. The International Monetary Fund will release the latest round of its World Economic Outlook Update on Monday,...[Read More]