Walking The Tightrope – The Property Imperative Weekly 18 Nov 2017

A really mixed bag of news this week, with stronger business and employment data, lower mortgage defaults and yet weak wage growth, and more evidence of the pressure on households. We pick over the coals and try to make sense of what’s going on.  Welcome to the Property Imperative Weekly to 18 November 2017. Watch … Continue reading “Walking The Tightrope – The Property Imperative Weekly 18 Nov 2017”

The ACT Is Another Country

The ABS has released their analysis of individual state accounts to Jun 2017. This includes an estimate of average gross household disposable income per capita. The variations across states are significant and interesting. Of note is the astronomical value, and trajectory of individuals in the ACT, relative to everywhere else.  In addition, we see a … Continue reading “The ACT Is Another Country”

Increasing wages would make the Australian economy safer

From The Conversation. Australian wages have again failed to meet expectations – rising by just 2% on an annual basis. This is bad not just for workers, but for the economy in general. Wages need to rise, especially for those on low to middle incomes. Research shows that even a small increase in interest rates … Continue reading “Increasing wages would make the Australian economy safer”

Machine Learning, Analytics And Central Banking

The latest Bank Underground blog post “New Machines for The Old Lady”,  explores the power of machine learning and advanced analytics. Rapid advances in analytical modelling and information processing capabilities, particularly in machine learning (ML) and artificial intelligence (AI), combined with ever more granular data are currently transforming many aspects of everyday life and work. … Continue reading “Machine Learning, Analytics And Central Banking”

Bank of England Lifts Cash Rate

From the UK Office For National Statistics. Concerns about “inflation over target” and “limited” slack in the economy have prompted the Bank of England to raise interest rates for the first time in more than a decade. On 2 November 2017, the Bank’s Monetary Policy Committee (MPC) voted 7-2 in favour of raising the interest … Continue reading “Bank of England Lifts Cash Rate”

Asleep At The Wheel? – The Property Imperative Weekly 28 Oct 2017

Another big week of finance and property news, so we pick over the bones and try to make sense of what’s going on. And we ask were the Regulators asleep at the wheel? Welcome to the Property Imperative weekly to 28th October 2017. Watch the video or read the transcript. We start this week’s review … Continue reading “Asleep At The Wheel? – The Property Imperative Weekly 28 Oct 2017”

National Accounts 2016-17 Highlights Reliance On Property

The ABS released their National Accounts for 2016-17. Overall, we see why the RBA cut rates to let property prices run hot. Without property, the economy would have been shot. But of course, getting back on a more even keel is now much more difficult and much of household wealth is attached to inflated property … Continue reading “National Accounts 2016-17 Highlights Reliance On Property”

QBE Housing Outlook Forecasts Slowing Price Growth

The annual report produced by BIS Oxford Economics for QBE Lenders’ Mortgage Insurance says that the outlook for house and unit prices is likely to become more subdued over the next year or two. Many markets are now building too much stock, particularly units, after new dwelling starts peaked at a record 233,600 dwellings in … Continue reading “QBE Housing Outlook Forecasts Slowing Price Growth”

The Treasury View Of Household Debt

John Fraser, Secretary to the Treasury, gave an update on household finances and housing as part of his opening statement to the October 2017 Senate Estimates.  More evidence of the Council of Financial Regulators group-think?  The view that debt is born by those with the greater capacity to repay belies the leverage effect of larger … Continue reading “The Treasury View Of Household Debt”

Pulling In Two Directions – The Property Imperative Weekly 21 Oct 2017

The latest economic and finance data appears to be pulling in two directions, so we discuss the trends. Welcome to the Property Imperative Weekly to 21st October 2017. Watch the video, or read the transcript! In this week’s review of the latest finance and property news, we start with data from the Australian Institute of … Continue reading “Pulling In Two Directions – The Property Imperative Weekly 21 Oct 2017”