Reserve Bank of Australia

Good news for out-of-work Australians is likely to translate as bad news for those with mortgages.

The IMF believes Australia’s economy is expected to recover gradually, with growth projected to begin picking up in the latter half of 2024.

Across Australia, there were 330,000 job vacancies in August 2024, down by 18,000 from May.

While inflation has fallen within the target 2 percent range, the RBA chief has already warned that this would likely be temporary.

Bullock stated that Australia sets its interest rates based on domestic circumstances, noting that we have been less restrictive compared to some others.

RBA says inflation has significantly decreased since its 2022 peak, thanks to higher interest rates that have aligned aggregate demand and supply.

Finance Minister Katy Gallagher said the party has gone ‘out of control.’

The increase in job numbers, almost double what was forecast, is positive news for the unemployed, but may diminish expectations of an RBA rate cut.

The number of people working full-time fell.

An expert says RBA’s slow pace has left inflation high, while the Fed’s strategy succeeded. He suggested the RBA to reconsider its gradual approach.

The opposition warns the reform may result in a ’sack and stack' approach.

The opposition pressed the government on the different of strategy with the Reserve Bank.

The prime minister defended the RBA’s monetary policy, adding the government has many schemes assisting households with cost of living.

The governor said inflation was still too high.

Food and alcohol price rises offset the fall in electricity prices.

Chalmers aims for the Bill to pass this year so the new Reserve Bank board can be operational from the start of 2025.

‘If small and family businesses are the ’engine room of the economy‘, we have lost a cylinder in a four-cylinder engine in the aftermath of COVID,’ he said.

The US Federal Reserve has signalled cuts at its next meeting in September. The question now is: will the RBA follow suit next week, as many predict?

The Reserve Bank of Australia will study a range of data as the nation waits to see if another interest rates rise will arrive in August.

The board said it remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome.