Australian news and politics live: RBA expected to cut rates again, calls for national anti-hate taskforce
Australians are bracing for another interest rate cut, with the Reserve Bank of Australia widely expected to lower the cash rate by 0.25 percentage points at 2.30pm on Tuesday, bringing it to 3.60 per cent.
All four major banks: ANZ, Commonwealth Bank, NAB, and Westpac have forecast the move, citing weaker household spending, softer inflation, and ongoing global uncertainty as key drivers.
Economists say a cut would trim around $76 a month from repayments on a typical $500,000 mortgage, adding up to nearly $230 in savings from three cuts since February.
While that's welcome news for existing borrowers, it's also intensifying competition in the property market, with buyers rushing to secure homes before prices climb further.
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The Advertiser
2 hours ago
- The Advertiser
All signs point to jobs market holding firm in new data
Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3. Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3. Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3. Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3.
News.com.au
2 hours ago
- News.com.au
ASX 200 closes the week lower on latest Trump development
Australia mining stocks surged on Friday, but it was not enough to lift the local market as every other sector slipped. On a seesawing day of trading, the ASX 200 closed down 9.10 points or 0.11 per cent to 8,580.10. The broader All Ordinaries also slipped down 10 points or 0.11 per cent to close the week at 8,816.70. The pullback in shares came after US President Donald Trump announced on NBC News that blanket tariffs of between 15 to 20 per cent were coming for most trading partners, while Canada would likely face 35 per cent tariffs on some goods. That saw the Australia dollar swing from its highest point since November to fall back as the US dollar strengthened against all Asian currencies. At the close of trading the Australian dollar was buying 65.83 US cents. Commonwealth Bank associate director international economic and currency Carol Kong said the US dollar rose after a 'barrage of threats by President Trump.' 'Near record high US equities and the lack of significant negative impacts of tariffs on the US economy to date have likely emboldened President Trump to increase his aggression on tariffs,' she said. 'AUD/USD briefly dropped by about 0.6 per cent below 0.6560 in the Asia session after President Trump threatened more tariffs.' On an overall negative day sparked by Mr Trump's latest tariffs update, 10 of the 11 sectors on the ASX fell. The one bright spot was the mining sector as the price of iron ore hit a two month high. BHP shares jumped 2.77 per cent to $39.36 while Fortescue Metals rose 2.85 per cent to $16.98 and Rio Tinto gained 2.28 per cent to $111.10. Shares in Australian rare earth miners jumped on the announcement from the US Department of Defence after it agreed to take a 15 per cent stake in US producer MP materials for $US400m ($607m) which closed more than 50 per cent higher on the announcement. Lynas Rare Earths soared 16.65 per cent to $9.67 and Iluka Resources climbed 22.9 per cent to $4.89 on the back of this announcement. Offsetting the gains from the miners were falls in major banks with bourse heavyweight CBA dropping 0.53 per cent to $179.42, NAB slipping 0.33 per cent to $39.61 and Westpac down 0.18 per cent to $33.81. ANZ was the outlier closing 0.13 per cent higher at $30.33. In company news, construction materials business John Lyng Group soared 22.33 per cent to $3.89 after informing the market it had agreed to sell itself to Pacific Equity Partners for $1.3bn. Shares in Vulcan Energy Resources slumped 13 per cent to $3.48 after completing a strategic placement led by BNP Paribas Clean Energy Solutions Fund. The lithium developer raised $53.6m at a 15 per cent discount of $3.40 a share.
Perth Now
3 hours ago
- Perth Now
Albo's Shanghai stroll under watchful eyes
Anthony Albanese has taken a walk down Shanghai's world-famous waterfront under the watchful eyes of Chinese officials, with his hosts doing their utmost to give him an unobstructed view of the towering central skyline. Onlookers gazed with unabashed curiosity as the Prime Minister and his posse strolled along the picturesque Bund with an air of confidence akin to the man who broke the bank at Monte Carlo. 'It isn't racism,' one Australian official told NewsWire. 'They just haven't seen so many white people in a big group like this before.' Among the curious crowds were people eager to extend warm welcomes and well-wishes in English. 'Hello, welcome,' a young man said. Another onlooker said she wished 'you have a warm stay'. But asked any questions that strayed from general niceties, they simply smiled and repeated their greetings. Mr Albanese was accompanied by Australian soccer legend Kevin Muscat. Prime Minister Anthony Albanese landed in Shanghai on Saturday. Supplied/PMO Credit: Supplied Mr Muscat is now head coach at Shanghai Port FC. 'A legendary Australian footballer, and now the manager here of Shanghai FC port and indeed, premiership winning manager here,' Mr Albanese told reporters from the promenade. 'One of the things about Australia and China that's so important is that we build people-to-people relations. 'And we do that by the participation of Australians here, whether it be here in football, whether it be the leading tournament that's going to take place in Chengdu, for the Australian Open, whether it be the business relationships that we have here as well.' China's charm offensive comes as Canberra and Beijing strive to focus on the positives of their relationship. Mr Albanese, who touched down in Shanghai on Saturday, has spruiked tourism, trade and people-to-people links. The Chinese government is acutely aware that Australia's relationship with the US is strained by the Trump administration's tariffs and the Albanese government's lacklustre defence spending. In the minds of Canberra and Beijing, both are reasons to talk more, not less. Ahead of Mr Albanese's lengthy state visit, China's ambassador invited the Albanese government to deepen the Australia's economic relationship with China and find consensus on differences — however chiasmic they may be. The envoy even teased co-operation on artificial intelligence. Though, Mr Albanese has so far neither embraced nor rejected the wooing and instead stuck firmly to his China mantra: 'We will co-operate where we can, disagree where we must, but engage in our national interest.'
