The Reserve Bank of Australia now feels that risks around the outlook for the economy are slightly more balanced than earlier in the year, while signaling that it isn’t ruling any policy options in or out for now, the Wall Street Journal reported. In minutes of its March 18-19 policy meeting published Tuesday, the interest-rate setting board of the RBA said that while there are ongoing risks to inflation and weak economic growth, they are largely even.
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In a sign of easing tensions between Australia and China, China said Thursday that it would lift the tariffs it placed on Australian wine more than three years ago, the New York Times reported. The tariffs, which were first imposed in 2020 amid a nasty diplomatic spat between Australia and China, had all but vaporized the country’s biggest overseas market, worth 1.2 billion Australian dollars or around $800 million at its peak. Australian winemakers faced desperate hardship and were stuck with a surfeit of big-bodied red wines.
Australia’s highly indebted households appear well-placed to continue riding out the pain of high interest rates and soaring living costs, with even the most vulnerable in a position to continue servicing mortgages, the Reserve Bank of Australia said Friday, the Wall Street Journal reported. In its latest report card on financial stability, the RBA said that while high inflation and interest rates have put pressure on household budgets over the past two years, nearly all borrowers continue to service their debts on schedule.
The Reserve Bank of Australia said Tuesday that it still can’t rule out the possibility that interest rates will need to be raised further, adding that inflation remains too high and is expected to remain elevated for some time yet, the Wall Street Journal reported. The RBA left its official cash rate on hold at 4.35% at its policy meeting. The decision was widely expected by economists. “While recent data indicate that inflation is easing, it remains high.
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The Australian government has announced it will abolish close to 500 “nuisance” tariffs from July 1, reducing the cost of importing everything from toothbrushes to roller coasters and bumper cars, the Wall Street Journal reported. Described by the center-left Labor government as the biggest unilateral tariff reform in at least two decades, removing the tariffs will cost the budget $19.9 million (30 million Australian dollars) in lost revenue annually, but help to streamline $5.6 billion (A$8.5 billion) in annual trade.
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Australia’s commodity-rich economy is on track for a soft landing, despite an alarming slowdown over the last year, supported by a household savings and an injection of pension funds as members of Generation X join baby boomers in retirement, according to the world’s biggest asset manager BlackRock, the Wall Street Journal reported. Craig Vardy, a portfolio manager for BlackRock based in Sydney, told reporters at a briefing that with swarms now tapping their retirement funds, the pool of savings in the economy is rising and is acting to ward off a recession.
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Australian unemployment climbed to a two-year high at the opening of the year, highlighting the nation’s cooling labor market and sending the currency lower as traders brought forward bets on an interest-rate cut, Bloomberg News reported. The economy added just 500 roles in January, confounding expectations for a 25,000 gain and well shy of numbers needed to hold down the jobless rate, government data showed Thursday. Unemployment advanced to 4.1% from 3.9% while the participation rate was steady.
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Australian consumer confidence fell last week after the Reserve Bank of Australia left interest rates on hold while signaling that all policy options remain on the table including further interest rate increases, the Wall Street Journal reported. Consumer confidence fell 1.2 points from the prior week, according to a survey by ANZ and pollster Roy Morgan. The four-week moving average was down 0.5 points.
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An Australian regulator is reviewing how pension funds value unlisted assets, ranging from private equity to office towers, as part of a long-term push to limit risks within the illiquid holdings popular in the A$2.5 trillion ($1.7 trillion) sector, Reuters reported. The Australian Prudential Regulation Authority (APRA) requested information from multiple pension funds in late 2023 as part of the review into unlisted asset valuation governance, according to a previously unreported November 2023 letter seen by Reuters.
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Australian home prices just hit a high in what was already one of the world’s most expensive real-estate markets. Now, Australian officials say they have a plan that will help to make housing more affordable: curtailing migration, the Wall Street Journal reported. A new policy, unveiled this week, will result in a 14% reduction in migrants over the next four years than would otherwise be expected, according to government forecasts.
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