RBA expected to cut interest rates, says Westpac chief economist
Westpac chief economist Luci Ellis expects a quarter of percentage point to be shaved off the cash rate, and she's also pencilled in two further cuts in August and November.
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SBS Australia
42 minutes ago
- SBS Australia
Anthony Albanese announces new move to tackle Australia's productivity problem
Prime Minister Anthony Albanese has announced that Treasurer Jim Chalmers will convene a 'roundtable' at Parliament House later this year to help shape the government's agenda on economic growth and productivity. In his first National Press Club address since being re-elected, Albanese said leaders from the business community, union movement and civil society would be brought together in August to discuss "a targeted set of issues" to help build "the broadest possible base of support for further economic reform". The aim of such reform would be "to drive growth, boost productivity, strengthen the budget and secure the resilience of our economy in a time of global uncertainty," Albanese said. "What we want is a focused dialogue and constructive debate that leads to concrete and tangible actions." Albanese said his government's plan for economic growth and productivity was about Australians "earning more and keeping more of what they earn", and that it wanted to build an economy where "growth, wages and productivity all rise together". Labour productivity is a measure of how much output is produced per worker or per hour worked. Productivity growth occurs when workers are able to get more out of the same or shorter amount of time — such as though access to technologies that make their processes more efficient. Productivity is a long-term driver of a stronger economy and improved living standards overall. In Australia, however, productivity growth has been declining. In the year to March, productivity fell 1 per cent, according to the Australian Bureau of Statistics. Economists have expressed concern about Australia's lagging productivity rate, and Chalmers has identified improving it as one of his key priorities, having called it the most significant structural problem facing the economy. Yes. In September 2022, during Albanese's first term as prime minister, the government similarly held a two-day Jobs and Skills Summit that brought together business and union leaders and other key stakeholders. Albanese lauded the outcomes of the summit during his Press Club address, saying that without it, Australia would have a greater skills shortages, no free TAFE program, and no financial incentives for workers in the construction and energy fields. "We wouldn't have those issues being addressed and a more rational discussion as well about the role that migration plays in that," Albanese said. However, Albanese said that the roundtable would be a "more streamlined dialogue" than the summit. Press Club president Tom Connell said to Albanese that in the wake of the Jobs and Skills Summit, some business leaders felt outcomes were slanted towards the priorities of unions. "We're a Labor government. We support unions existing," Albanese replied. "But we will always respect both the role of business and the role of unions. And one of the things that I say is that there are common interests ... you don't get union members unless you've got successful employers. It's the private sector that drives an economy. "What the public sector should do is facilitate private sector activity and private sector investment, and that's what my government is focused on." Albanese said he supports penalty rates and real wages increasing, and said the government would not "abandon" workers "getting a fair crack for their contribution". "What we do support is companies being successful. We support proper negotiation between workers and businesses to achieve productivity improvements. And we support living standards not going backwards." Chalmers is set to give his own National Press Club address next week. Albanese said the Treasurer would give more details about the roundtable during that speech. — With additional reporting by the Australian Associated Press
ABC News
an hour ago
- ABC News
F1 Australian Grand Prix confirmed as first race of the 2026 championship
Formula 1's new era will begin in Melbourne after the Australian Grand Prix was confirmed as the first race of the 2026 season. F1 will go through a massive change in 2026, with the introduction of Cadillac as the 11th team on the grid, as well as an overhaul of the sport's technical regulations. Audi will also make their debut in F1, taking over Sauber at the end of 2025. The 2026 Australian Grand Prix weekend will be held at Albert Park from Thursday, March 5 to Sunday, March 8. Melbourne's Albert Park circuit hosted the opening round of the 2025 season, with the estimated weekend attendance of 465,498 becoming a new record at the venue. "The Formula 1 calendar announcement is always an exciting moment, and in the coming weeks we will be sharing on-sale dates for tickets to the Formula 1 Australian Grand Prix 2026, which we know will be eagerly anticipated," Australian Grand Prix Corporation CEO Travis Auld said. "There is something special about being the first race of the season, and we're looking forward to sharing that with hundreds of thousands of fans once again in 2026." F1 released the full 24 weekend calendar on Tuesday, with the Abu Dhabi Grand Prix to be the season finale on December 6. Madrid is the newest addition to the circuit list, with Italy's famed Imola circuit, home of the Emilia Romagna Grand Prix, falling off the calendar. F1 has had 10 teams on the grid since the 2013 season. The introduction of Cadillac and Audi as teams highlights the popularity F1 has enjoyed over the past decade. American auto giant Ford will also rejoin F1 for the first time since 2004, partnering with Red Bull on their powertrains. McLaren driver Lando Norris won this year's Australian Grand Prix, ahead of Red Bull's Max Verstappen and Mercedes driver George Russell. Hometown hope Oscar Piastri, who leads the F1 championship heading into this weekend's Canadian Grand Prix, spun late and finished ninth in Melbourne.
Perth Now
an hour ago
- Perth Now
One thing keeping Aussies awake at night
Australians remain 'cautiously pessimistic' and aren't investing as the threats of US President Donald Trump's tariffs outweigh gains from falling interest rates and inflation. Consumer sentiment edged higher in early June according to the latest Westpac-Melbourne Institute index for the month of June, sitting at 92.6 compared to 92.1 last month. While this is a marginal improvement, sentiment around riskier assets remains low, with 55 per cent heavily favouring putting money in the bank or paying down debt. Just 10.2 per cent say real estate is the wisest investment option, while 9.7 per cent nominated shares. Westpac head of Australian macro-forecasting Matthew Hassan says consumers are waiting to see the fallout from the Trump tariffs. 'Indeed, responses to our quarterly question on the 'wisest place for savings' suggest that the tariff-related turmoil this year has seen what was already a high level of risk aversion intensify even further,' Mr Hassan said. Mr Hassan said more Australians are becoming aware about news on 'international conditions' and it is seen as a 'very clear negative'. 'News recall on this topic has risen to a three-year high with 77 per cent of consumers assessing the news as unfavourable – easily the most negative of the major news topics.' Westpac data also suggests it could be putting a handbrake on investing for years to come. Consumer confidence around the economy slipped slightly in the June quarter, while Australians are feeling more stressed about their jobs with the unemployment subindex rising by 5 per cent. Westpac also said expectations for the family finances over the next 12 months is down 1.9 per cent, while economic conditions over both the next 12 months and five years are predicted to slide. Overall consumers are in a cautiously pessimistic mood. NewsWire / John Appleyard Credit: News Corp Australia Mr Hassan said consumers overall were in a 'cautiously pessimistic' mood with these international events offsetting gains domestically. 'On the positive side, the RBA's May interest rate cut and moderating inflation are providing significant boosts, particularly around buyer attitudes towards major purchases,' he said. 'But against this, more sluggish growth reads domestically and the unsettled situation around global trade is continuing to weigh heavily on expectations.' One bright spot from the data showed more Australians think now is a good time to buy the family home, as the Reserve Bank of Australia's May rate cut and a slowing inflation rate provide a 'significant boost' towards buyers' feelings towards major purchases. The 'time to buy a dwelling' index rose 3.6 per cent to 93.3. While that marks the strongest reading since September 2021, pessimists still outnumber optimists with homebuyer sentiment still a long way below the historical average of 120. 'Despite this positive outlook for house prices, consumers remain relatively averse to real estate as an investment option and to risk in general,' Mr Hassan said.
