logo
Price moves to help RBA plot course through uncertainty

Price moves to help RBA plot course through uncertainty

The Advertiser25-05-2025

The Reserve Bank could use fresh inflation insights to gauge the depth of further rate cuts as global uncertainty threatens Australia's economic progress.
Consumer price data for April, to be released on Wednesday, will help guide the RBA on future changes after it reduced the cash rate to its lowest level in two years.
The decision showed the central bank was moving in a more dovish direction as Australia's main inflation measure returned to its target range of two to three per cent, NAB economists Michelle Shi and Gareth Spence said.
The RBA on Tuesday cut the official cash rate by a quarter of a percentage point to 3.85 per cent.
NAB economists predict another three rate cuts in the second half of 2025, bringing the cash rate to a "broadly neutral" stance of 3.1 per cent by November.
But US tariff drama and the unpredictability of Donald Trump's economic actions will continue to loom large over RBA meetings.
High levels of global uncertainty are likely to persist even as trade tensions ease between the US and China, the NAB economists warn.
"Unless pushed, the RBA could take a more gradual path towards neutral while watching the inflation data over time," they said.
Over the previous decade, Australian inflation has rarely been "just right".
JP Morgan's chief economist for Australia and New Zealand, Ben Jarman, warned the monthly inflation indicator could suggest "too much of a good thing" and drop below the target band.
However, quarterly trimmed mean inflation - the RBA's preferred measure - was more likely to be sticky due to a strong jobs market, which meant core inflation could stay within the bank's target into 2026, Mr Jarman said.
Rate cuts could lead to a rebound in home construction, Housing Industry Association chief economist Tim Reardon said, as the Australian Bureau of Statistics prepares to release building approvals data on Friday.
While the sector is already showing signs of improved confidence with homebuilding expected to increase across the next five years, long-term issues such as land shortages pose risks to affordability and reaching national supply targets.
"Australia has the capacity to deliver, but it will take a co-ordinated response from all three tiers of government to overcome these constraints," Mr Reardon said.
Retail trade figures for April are also due on Friday after the RBA flagged consumer spending had been softer than expected in recent months.
This will be the one of the last retail trade releases before the statistics bureau replaces the series with a broader household spending indicator.
The Reserve Bank could use fresh inflation insights to gauge the depth of further rate cuts as global uncertainty threatens Australia's economic progress.
Consumer price data for April, to be released on Wednesday, will help guide the RBA on future changes after it reduced the cash rate to its lowest level in two years.
The decision showed the central bank was moving in a more dovish direction as Australia's main inflation measure returned to its target range of two to three per cent, NAB economists Michelle Shi and Gareth Spence said.
The RBA on Tuesday cut the official cash rate by a quarter of a percentage point to 3.85 per cent.
NAB economists predict another three rate cuts in the second half of 2025, bringing the cash rate to a "broadly neutral" stance of 3.1 per cent by November.
But US tariff drama and the unpredictability of Donald Trump's economic actions will continue to loom large over RBA meetings.
High levels of global uncertainty are likely to persist even as trade tensions ease between the US and China, the NAB economists warn.
"Unless pushed, the RBA could take a more gradual path towards neutral while watching the inflation data over time," they said.
Over the previous decade, Australian inflation has rarely been "just right".
JP Morgan's chief economist for Australia and New Zealand, Ben Jarman, warned the monthly inflation indicator could suggest "too much of a good thing" and drop below the target band.
However, quarterly trimmed mean inflation - the RBA's preferred measure - was more likely to be sticky due to a strong jobs market, which meant core inflation could stay within the bank's target into 2026, Mr Jarman said.
Rate cuts could lead to a rebound in home construction, Housing Industry Association chief economist Tim Reardon said, as the Australian Bureau of Statistics prepares to release building approvals data on Friday.
While the sector is already showing signs of improved confidence with homebuilding expected to increase across the next five years, long-term issues such as land shortages pose risks to affordability and reaching national supply targets.
"Australia has the capacity to deliver, but it will take a co-ordinated response from all three tiers of government to overcome these constraints," Mr Reardon said.
Retail trade figures for April are also due on Friday after the RBA flagged consumer spending had been softer than expected in recent months.
This will be the one of the last retail trade releases before the statistics bureau replaces the series with a broader household spending indicator.
The Reserve Bank could use fresh inflation insights to gauge the depth of further rate cuts as global uncertainty threatens Australia's economic progress.
Consumer price data for April, to be released on Wednesday, will help guide the RBA on future changes after it reduced the cash rate to its lowest level in two years.
The decision showed the central bank was moving in a more dovish direction as Australia's main inflation measure returned to its target range of two to three per cent, NAB economists Michelle Shi and Gareth Spence said.
The RBA on Tuesday cut the official cash rate by a quarter of a percentage point to 3.85 per cent.
NAB economists predict another three rate cuts in the second half of 2025, bringing the cash rate to a "broadly neutral" stance of 3.1 per cent by November.
But US tariff drama and the unpredictability of Donald Trump's economic actions will continue to loom large over RBA meetings.
High levels of global uncertainty are likely to persist even as trade tensions ease between the US and China, the NAB economists warn.
"Unless pushed, the RBA could take a more gradual path towards neutral while watching the inflation data over time," they said.
Over the previous decade, Australian inflation has rarely been "just right".
JP Morgan's chief economist for Australia and New Zealand, Ben Jarman, warned the monthly inflation indicator could suggest "too much of a good thing" and drop below the target band.
However, quarterly trimmed mean inflation - the RBA's preferred measure - was more likely to be sticky due to a strong jobs market, which meant core inflation could stay within the bank's target into 2026, Mr Jarman said.
Rate cuts could lead to a rebound in home construction, Housing Industry Association chief economist Tim Reardon said, as the Australian Bureau of Statistics prepares to release building approvals data on Friday.
While the sector is already showing signs of improved confidence with homebuilding expected to increase across the next five years, long-term issues such as land shortages pose risks to affordability and reaching national supply targets.
"Australia has the capacity to deliver, but it will take a co-ordinated response from all three tiers of government to overcome these constraints," Mr Reardon said.
Retail trade figures for April are also due on Friday after the RBA flagged consumer spending had been softer than expected in recent months.
This will be the one of the last retail trade releases before the statistics bureau replaces the series with a broader household spending indicator.
The Reserve Bank could use fresh inflation insights to gauge the depth of further rate cuts as global uncertainty threatens Australia's economic progress.
Consumer price data for April, to be released on Wednesday, will help guide the RBA on future changes after it reduced the cash rate to its lowest level in two years.
The decision showed the central bank was moving in a more dovish direction as Australia's main inflation measure returned to its target range of two to three per cent, NAB economists Michelle Shi and Gareth Spence said.
The RBA on Tuesday cut the official cash rate by a quarter of a percentage point to 3.85 per cent.
NAB economists predict another three rate cuts in the second half of 2025, bringing the cash rate to a "broadly neutral" stance of 3.1 per cent by November.
But US tariff drama and the unpredictability of Donald Trump's economic actions will continue to loom large over RBA meetings.
High levels of global uncertainty are likely to persist even as trade tensions ease between the US and China, the NAB economists warn.
"Unless pushed, the RBA could take a more gradual path towards neutral while watching the inflation data over time," they said.
Over the previous decade, Australian inflation has rarely been "just right".
JP Morgan's chief economist for Australia and New Zealand, Ben Jarman, warned the monthly inflation indicator could suggest "too much of a good thing" and drop below the target band.
However, quarterly trimmed mean inflation - the RBA's preferred measure - was more likely to be sticky due to a strong jobs market, which meant core inflation could stay within the bank's target into 2026, Mr Jarman said.
Rate cuts could lead to a rebound in home construction, Housing Industry Association chief economist Tim Reardon said, as the Australian Bureau of Statistics prepares to release building approvals data on Friday.
While the sector is already showing signs of improved confidence with homebuilding expected to increase across the next five years, long-term issues such as land shortages pose risks to affordability and reaching national supply targets.
"Australia has the capacity to deliver, but it will take a co-ordinated response from all three tiers of government to overcome these constraints," Mr Reardon said.
Retail trade figures for April are also due on Friday after the RBA flagged consumer spending had been softer than expected in recent months.
This will be the one of the last retail trade releases before the statistics bureau replaces the series with a broader household spending indicator.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

'Like the real thing': Australian wine company makes bold low-alcohol claim
'Like the real thing': Australian wine company makes bold low-alcohol claim

9 News

time2 hours ago

  • 9 News

'Like the real thing': Australian wine company makes bold low-alcohol claim

Your web browser is no longer supported. To improve your experience update it here The company behind iconic Australian winemaker Penfolds claims it's developed an alcohol -free drop that still tastes just like the real thing. Treasury Wine Estates, which owns the likes of Penfolds, Squealing Pig, and Pepperjack, has unveiled a new $15 million facility in the Barossa Valley dedicated to producing low and no-alcohol wines . The company claims its innovative technique, involving distillation at very low temperatures, preserves the aromas and flavours typically lost in alcohol removal. The company behind iconic Australian winemaker Penfolds claims it's developed an alcohol-free drop that still tastes just like the real thing. (9News) "The whole concept is really about retaining as much taste and flavour in our mid-strength and no-alcohol wines, which is really important for this emerging consumer category," winemaker Toby Barlow said. The process, which the company says took two years to perfect, aims to cater to a growing market of "health-conscious" drinkers. "Up to 58 per cent of people have stated that they're looking to reduce their alcohol intake," spokeswoman Sarah Parkes said. The wines were tested on the streets of the Barossa Valley and received largely positive reviews. "It's quite sweet, sauv blanc is usually not super sweet, but I wouldn't know that it's non-alcoholic, but it's quite lovely," local Emma Holmes said. The process, which the company says took two years to perfect, aims to cater to a growing market of "health-conscious" drinkers. (9News) "I'm definitely conscious of my health and how much alcohol I'm consuming so something like this that has no alcohol, yeah really good option," Stuart Jenkins, another taste tester, said. More alcohol-free product lines are currently in the making. This article was produced with the assistance of 9ExPress . wine South Australia Adelaide national alcohol Australia CONTACT US

‘They have never exported': Shots fired in bid to build new warships for Australia
‘They have never exported': Shots fired in bid to build new warships for Australia

Sydney Morning Herald

time5 hours ago

  • Sydney Morning Herald

‘They have never exported': Shots fired in bid to build new warships for Australia

Kiel, Germany: One of Germany's leading defence companies has ramped up its attempt to secure a $10 billion contract to build a fleet of warships for the Australian navy, taking aim at its Japanese rival as it offers to export Australian-made ships across the Indo-Pacific. thyssenkrupp Marine Systems, the defence division of German industrial conglomerate thyssenkrupp, is competing against Japanese firm Mitsubishi Heavy Industries to build up to 11 general purpose frigates to replace the navy's ageing fleet of Anzac-class ships. The Albanese government has said it will decide the winner by the end of the year, with the first ship to be delivered in 2029. The government plans to buy the first three frigates from an overseas production line before constructing the remaining ships in Australia to accelerate the acquisition process. Mitsubishi's Mogami 06FFM frigate is widely seen in defence circles as the more modern and advanced vessel, and the Japanese government is leaning heavily on its burgeoning strategic relationship with Australia to secure an advantage. Meanwhile, TKMS is pitching its MEKO A-200 frigate as a tested and low-risk option that would avoid the cost blowouts and delays that have bedevilled recent navy projects such as the Hunter-class frigate program. Speaking publicly for the first time about his company's bid, TKMS chief executive Oliver Burkhard told this masthead: 'I know our competitors. They have never exported in the past.' By contrast, he said the German frigate was a 'wonderful concept' that had 'been proven several times'.

‘They have never exported': Shots fired in bid to build new warships for Australia
‘They have never exported': Shots fired in bid to build new warships for Australia

The Age

time5 hours ago

  • The Age

‘They have never exported': Shots fired in bid to build new warships for Australia

Kiel, Germany: One of Germany's leading defence companies has ramped up its attempt to secure a $10 billion contract to build a fleet of warships for the Australian navy, taking aim at its Japanese rival as it offers to export Australian-made ships across the Indo-Pacific. thyssenkrupp Marine Systems, the defence division of German industrial conglomerate thyssenkrupp, is competing against Japanese firm Mitsubishi Heavy Industries to build up to 11 general purpose frigates to replace the navy's ageing fleet of Anzac-class ships. The Albanese government has said it will decide the winner by the end of the year, with the first ship to be delivered in 2029. The government plans to buy the first three frigates from an overseas production line before constructing the remaining ships in Australia to accelerate the acquisition process. Mitsubishi's Mogami 06FFM frigate is widely seen in defence circles as the more modern and advanced vessel, and the Japanese government is leaning heavily on its burgeoning strategic relationship with Australia to secure an advantage. Meanwhile, TKMS is pitching its MEKO A-200 frigate as a tested and low-risk option that would avoid the cost blowouts and delays that have bedevilled recent navy projects such as the Hunter-class frigate program. Speaking publicly for the first time about his company's bid, TKMS chief executive Oliver Burkhard told this masthead: 'I know our competitors. They have never exported in the past.' By contrast, he said the German frigate was a 'wonderful concept' that had 'been proven several times'.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store