Is This The RBA’s Bernanke Moment?

Just before the GFC hit, the then Chair of the Fed reassured that everything was going to be fine. The subprime mess is grave but largely contained, said Federal Reserve Chairman Ben Bernanke Thursday, in a speech before the Federal Reserve Bank of Chicago. While rising delinquencies and foreclosures will continue to weigh heavily on … Continue reading “Is This The RBA’s Bernanke Moment?”

RBA Minutes March 2019

The RBA released their minutes today relating top the March 2019 meeting. They called out the market’s view that policy rates would be lower in 2020 (a turn around), lower retail, and slowing housing momentum, despite strong employment. In considering the stance of monetary policy, members observed that growth in the global economy had been … Continue reading “RBA Minutes March 2019”

Australia’s sudden ultra-low economic growth ought not to have come as surprise

From The Conversation. Australia’s big little economic lie was laid bare on Wednesday. National accounts figures show that the Australian economy grew by just 0.2% in the last quarter of 2018. This disappointing result was below market expectations and official forecasts of 0.6%. It put annual growth for the year at just 2.3%. But the … Continue reading “Australia’s sudden ultra-low economic growth ought not to have come as surprise”

Economy Grew 0.2 per cent in December quarter; Per Capita Recession Hits!

The Australian economy grew 0.2 per cent in seasonally adjusted chain volume terms in the December quarter 2018, according to figures released by the Australian Bureau of Statistics (ABS) today. But the heavy lifting was done by Government, leading to a 2.3% annual result. In seasonally adjusted terms we had two quarter falls in GDP … Continue reading “Economy Grew 0.2 per cent in December quarter; Per Capita Recession Hits!”

IMF sounds alarm on Aussie debt bubble

From Investor Daily. An excellent piece by James Mitchell. The International Monetary Fund has recommended that APRA takes a forensic “deep dive” into the credit risk management frameworks of Australian banks. The IMF has released its Financial Sector Assessment Program (FSAP) report on Australia. While the comprehensive review was generally positive towards the domestic economy … Continue reading “IMF sounds alarm on Aussie debt bubble”

Reality on The Blink Again – The Property Imperative Weekly 23 Feb 2019

 Welcome to the Property Imperative weekly to the 23rd of February 2019 – our digest of the latest finance and property news with a distinctively Australian flavour.    Watch the video, listen to the podcast or read the transcript. The gap between the real data on housing and finance and the narrative offered by the … Continue reading “Reality on The Blink Again – The Property Imperative Weekly 23 Feb 2019”

RBA Minutes, Long But Little Sense

The RBA released their minutes today, probably the longest ever! But I am not sure they see the obvious. Slowing consumption, lower growth = slowing economy. Wages growth later won’t save the day! International Economic Conditions Members commenced their discussion of the global economy by noting that growth in Australia’s major trading partners had been … Continue reading “RBA Minutes, Long But Little Sense”

RBA “Even Money” On Rate Rise Or Rate Fall

RBA Governor Philip Lowe, addressed the National Press Club today, providing an upbeat assessment of the economy. He was even money on the next rate move, but interestingly he blamed lack of supply of housing not credit supply, or low interest rates for high home prices. He believes wages will rise, eventually. And finally he … Continue reading “RBA “Even Money” On Rate Rise Or Rate Fall”

Falling, Falling and The Phony War – The Property Imperative Weekly 02 Feb 2019

Welcome to the Property Imperative weekly to the second of February 2019 – our digest of the latest finance and property news with a distinctively Australian flavour.    Watch the video, or read the transcript. As we wait for the public release of the Royal Commission Banking report on Monday, the slew of local data … Continue reading “Falling, Falling and The Phony War – The Property Imperative Weekly 02 Feb 2019”

CPI rose 0.5 per cent in the December quarter 2018

The ABS reports that the Consumer Price Index (CPI) rose 0.5 per cent in the December quarter 2018, which follows a rise of 0.4 per cent in the September quarter. This means that inflation, on the official measures remains BELOW the RBA’s target range of 2-3%, at 1.8% and may suggest more of a bias … Continue reading “CPI rose 0.5 per cent in the December quarter 2018”