Latest news with #RBA
The Advertiser
2 hours ago
- Business
- The Advertiser
Job figures the fresh piece of Reserve Bank rate puzzle
The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators." The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators." The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators." The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators."
Perth Now
3 hours ago
- Business
- Perth Now
Job figures the fresh piece of Reserve Bank rate puzzle
The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators."
Sydney Morning Herald
6 hours ago
- Business
- Sydney Morning Herald
Why is bitcoin soaring? And is it time to invest?
Despite Nakamoto's original vision of bitcoin replacing cash, these days the cryptocurrency is much more akin to a digital version of gold, as the network is far too expensive and slow to be able to use it as a legitimate cash replacement. Indeed, central banks around the world have said cryptocurrencies are unfit for everyday use, with RBA governor Michele Bullock saying it has 'no role' in the Australian economy. Investors originally saw bitcoin as a 'safe haven' asset separated from the fluctuation of markets. However, recently, institutional investors have flocked to the asset class, with about 6 per cent of bitcoin being held in exchange-traded funds (ETFs). Why is it rallying? Bitcoin and other cryptocurrencies are notoriously volatile, with their valuation regularly dropping or rising by thousands of dollars in mere minutes. However, the recent rally has been more sustained, thanks largely to the influence of Trump. During his campaign, Trump made no secret of his support for cryptocurrencies, promising to make the US the 'crypto capital of the world'. Once elected, he then enacted several policies to promote crypto, including establishing a strategic bitcoin reserve within US Treasury, and holding a crypto summit at the White House. Loading He also released his own Trump-branded cryptocurrency, which has a market capitalisation of $US1.9 billion. Republicans are now attempting to pass three more crypto-friendly bills – The GENIUS Act, The Clarity Act and The Anti-CBDC Surveillance State Act – all of which will create a friendlier regulatory environment for crypto traders and companies, including clarifying when digital assets like crypto tokens are considered securities or commodities. Crypto advocates view these bills as the US government's effective endorsement of the sector and a further legitimisation of bitcoin, despite widespread crime in the industry and real-world use cases for cryptocurrencies still few and far between. How much has the price risen? After bitcoin's creation in 2008, you could buy one for just a few cents, with 10,000 bitcoin famously being used to buy two pizzas in early 2010. As of Wednesday afternoon, one bitcoin was worth about $185,000. Since Trump's election, the asset's price has risen by almost $80,000, or 76 per cent. Should you invest? Obviously, the best time to have bought bitcoin was 2009 – and even then, you would have needed to conveniently forget about it until now. But is it still worth buying even with its heady valuation? 'Yes, we think so,' says Justin Lin, investment strategist at ETF provider Global X. '2025 is shaping up to be a landmark year for bitcoin adoption. This year we've seen some serious signs that investors are starting to value the asset for its fundamental strengths rather simply speculating on its price. Loading 'We think bitcoin is on its way to becoming a portfolio staple across the world, and as adoption grows, price discovery will follow.' Global X believes bitcoin will reach a valuation of $US200,000 by midway through next year. Much of this, Lin says, will be driven by traditional investors through bitcoin ETFs, with the current crop of crypto investors mainly consisting of younger, tech-savvy investors. 'By our calculations, only about 20,000 Australians have invested in ASX-listed bitcoin ETFs. That's shockingly low compared to the US. We take it as a sign that our older investment community still has a lot of catching up to do,' he says. How can you invest? There are a number of online bitcoin exchanges that operate both internationally and in Australia. You can sign up to one and buy bitcoin or other crypto. Keep in mind you don't have to purchase a whole one – you can just buy a fraction of a coin. These exchanges allow you to buy, sell, and store your bitcoin, much like an online stockbroker such as CommSec. The bitcoin ETFs are becoming increasingly popular as a way for traditional investors to purchase the digital asset without having to make an exchange account, with the ETFs available to purchase the same way as any other ASX stock. However, chief executive of investment firm VanEck Asia Pacific Arian Neiron said Australian investors seem to be less willing to invest in crypto than their US counterparts. '[Australian] investors are more cautious about bitcoin exposure, particularly when there is price momentum based on sentiment,' he says.
The Age
6 hours ago
- Business
- The Age
Why is bitcoin soaring? And is it time to invest?
Despite Nakamoto's original vision of bitcoin replacing cash, these days the cryptocurrency is much more akin to a digital version of gold, as the network is far too expensive and slow to be able to use it as a legitimate cash replacement. Indeed, central banks around the world have said cryptocurrencies are unfit for everyday use, with RBA governor Michele Bullock saying it has 'no role' in the Australian economy. Investors originally saw bitcoin as a 'safe haven' asset separated from the fluctuation of markets. However, recently, institutional investors have flocked to the asset class, with about 6 per cent of bitcoin being held in exchange-traded funds (ETFs). Why is it rallying? Bitcoin and other cryptocurrencies are notoriously volatile, with their valuation regularly dropping or rising by thousands of dollars in mere minutes. However, the recent rally has been more sustained, thanks largely to the influence of Trump. During his campaign, Trump made no secret of his support for cryptocurrencies, promising to make the US the 'crypto capital of the world'. Once elected, he then enacted several policies to promote crypto, including establishing a strategic bitcoin reserve within US Treasury, and holding a crypto summit at the White House. Loading He also released his own Trump-branded cryptocurrency, which has a market capitalisation of $US1.9 billion. Republicans are now attempting to pass three more crypto-friendly bills – The GENIUS Act, The Clarity Act and The Anti-CBDC Surveillance State Act – all of which will create a friendlier regulatory environment for crypto traders and companies, including clarifying when digital assets like crypto tokens are considered securities or commodities. Crypto advocates view these bills as the US government's effective endorsement of the sector and a further legitimisation of bitcoin, despite widespread crime in the industry and real-world use cases for cryptocurrencies still few and far between. How much has the price risen? After bitcoin's creation in 2008, you could buy one for just a few cents, with 10,000 bitcoin famously being used to buy two pizzas in early 2010. As of Wednesday afternoon, one bitcoin was worth about $185,000. Since Trump's election, the asset's price has risen by almost $80,000, or 76 per cent. Should you invest? Obviously, the best time to have bought bitcoin was 2009 – and even then, you would have needed to conveniently forget about it until now. But is it still worth buying even with its heady valuation? 'Yes, we think so,' says Justin Lin, investment strategist at ETF provider Global X. '2025 is shaping up to be a landmark year for bitcoin adoption. This year we've seen some serious signs that investors are starting to value the asset for its fundamental strengths rather simply speculating on its price. Loading 'We think bitcoin is on its way to becoming a portfolio staple across the world, and as adoption grows, price discovery will follow.' Global X believes bitcoin will reach a valuation of $US200,000 by midway through next year. Much of this, Lin says, will be driven by traditional investors through bitcoin ETFs, with the current crop of crypto investors mainly consisting of younger, tech-savvy investors. 'By our calculations, only about 20,000 Australians have invested in ASX-listed bitcoin ETFs. That's shockingly low compared to the US. We take it as a sign that our older investment community still has a lot of catching up to do,' he says. How can you invest? There are a number of online bitcoin exchanges that operate both internationally and in Australia. You can sign up to one and buy bitcoin or other crypto. Keep in mind you don't have to purchase a whole one – you can just buy a fraction of a coin. These exchanges allow you to buy, sell, and store your bitcoin, much like an online stockbroker such as CommSec. The bitcoin ETFs are becoming increasingly popular as a way for traditional investors to purchase the digital asset without having to make an exchange account, with the ETFs available to purchase the same way as any other ASX stock. However, chief executive of investment firm VanEck Asia Pacific Arian Neiron said Australian investors seem to be less willing to invest in crypto than their US counterparts. '[Australian] investors are more cautious about bitcoin exposure, particularly when there is price momentum based on sentiment,' he says.
The Advertiser
17 hours ago
- Business
- The Advertiser
Cafes, small businesses fear brunt of surcharge cut
After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said. After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said. After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said. After the morning rush of lattes and flat-whites flying out the door, Alan Low likes to settle in with his own coffee and try to balance his cafe's books. The exercise could become even trickier after the Reserve Bank of Australia proposed to remove surcharges on EFTPOS, Mastercard and Visa card transactions, which could save consumers $1.2 billion a year. But the inner-Sydney cafe owner feels small businesses have been left out of the equation. Every cent counts with a necessary $12,000-$15,000 a year collected through surcharges on the volume of sales Mr Low's cafe does. "There's nothing that is actually cheap for us," he told AAP. "There has to be one way that is actually to help us substitute it out "There's no way for us to absorb the cost anymore ... and the last thing we want is to jack up the prices for customers." Lowering the cap on interchange fees - another RBA recommendation - could save the sector $1.2 billion. The fee is paid by a business to a customer's card issuer when a transaction occurs. But for Mr Low - who rattled off a list of exorbitant expenses ranging from electricity, wages and insurance - the expected changes could have an impact. Small business owners face the same inflationary pressures that have hit consumers in recent years, he said. The cafe's margins have taken a hit as workers come into the city less frequently and residential buildings eat up spaces. The peak hospitality body also slammed the RBA's decision, saying it does not go far enough to help small businesses out. "To put it bluntly, it's a political fix – not a solution," Australian Hotels Association chief executive Stephen Ferguson said. "The RBA policy to ban surcharges just covers up the problem." But RMIT academic Angel Zhong was more upbeat, arguing the changes would overhaul an outdated transaction system and foster competition in payment services. "Small businesses stand to gain significantly from both the surcharge ban and interchange fee caps," she said. "With lower processing costs and simplified pricing, they can focus on serving customers rather than navigating complex payment fees." Dr Zhong warned "the transition needs careful monitoring" and it remains to be seen if and when actual savings filter down to businesses and consumers. Following news of the proposed changes, three-quarters of more than 3000 customers surveyed by financial comparison site Canstar said the fees should be banned. A survey of more than 1000 people commissioned by Visa earlier in July reported 85 per cent would prefer surcharges be built into upfront prices rather than charged separately. The payments provider said reducing interchange fees risked hampering local investment in fraud protection. "This is a dramatic shift that would have ripple effects far beyond payments," Visa Oceania manager Alan Machet said.
