Commission appointments must be signed off by the governor general. Follow live
Sorry – I am told by a couple of senators that it was “technically” 4.13am.
So expect to see a few bleary-eyed senators in the coffee lines this morning.
Continue reading...Figures indicate Reserve Bank may consider pausing interest rates at its next meeting on Tuesday
Australia’s annual inflation rate slowed in February, led by smaller rises for fuel and housing, adding to evidence that the worst of the price increases has passed.
The consumer price index rose at annual pace of 6.8% last month, the Australian Bureau of Statistics reported on Wednesday. Economists had expected the annual rate would have dropped to about 7.2% from January’s 7.4% pace.
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Continue reading...Premier casts vote in seat of Epping and Labor leader says he is ‘feeling optimistic’ as party hopes to return to power after 12 years in opposition
Dominic Perrottet has given some more expansive comments after voting a short time ago in his seat of Epping. He and Labor leader Chris Minns spoke last night, exchanging text messages and wishing each other good luck.
Here’s some more from the premier:
It’s a real honour to serve the people of New South Wales. There’s a lot at stake in this election. I will be working hard all day.
It’s not about the Liberal or National party. Ultimately, elections are about our people. My team has the plan to deal with the challenges of today, but we’re all wanting to set up the state for the children.
Our party has been here for 12 years, it’s transformed New South Wales. We were the worst performing economy, the state had stalled. We’ve turned that around. We’ve built schools and hospitals, the motorways have transformed people’s lives. But it’s all about the future and where we go from here. I believe my team has the plan, the experience, energy and ideas to take the state forward.
Continue reading...Unite says their analysis shows banks have made £7bn in extra profit from the rise in borrowing costs
Britain’s biggest banks are under pressure to pass on higher interest rates to savers after figures showing they have made an extra £7bn by refusing to do so, and as they stand to benefit from a tax cut announced by Jeremy Hunt.
On the day the Bank of England is expected to announce a further rise in interest rates, the Unite trade union said banks had already made billions of pounds in extra profit from the dramatic rise in borrowing costs.
Continue reading...Concerns half-point could set off domino effect across financial industry knocked by Credit Suisse crisis
The European Central Bank has raised interest rates across the eurozone by 0.5 percentage points, despite fears that higher borrowing costs could set off a domino effect across a banking sector already reeling from a collapse in confidence in Switzerland’s second largest lender, Credit Suisse.
Officials at the ECB, the central bank covering the 19-member euro bloc, said inflation was likely to remain high “for too long”, forcing it to continue with its planned run of rate increases.
Continue reading...European Central Bank could opt for smaller increase as concerns spread over health of banking system
The European Central Bank is facing a dilemma over whether to push ahead with its plans for a large interest rise on Thursday amid fears over the strength of the banking system after Wednesday’s heavy sell-off of the Swiss banking firm Credit Suisse.
After raising interest rates since last summer at a record pace to tackle high inflation across the eurozone, the ECB had in effect committed to another 0.5 percentage point increase in borrowing costs this week.
Continue reading...Average monthly cost of owning 3-bed home is £500 a year less than renting, but the gap is narrowing
Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax.
The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more.
Continue reading...Analysts say US Federal Reserve will probably reject further increase in borrowing costs next week
The world’s most powerful central banks could be forced to stop raising interest rates after the Silicon Valley Bank crisis, economists have said, amid growing signs of financial stress linked to rapid increases in borrowing costs over the past year.
Analysts said the US Federal Reserve would probably leave interest rates on hold at its decision next week, as the meltdown at the California-based technology lender ripples through global financial markets.
Continue reading...This blog is now closed.
Facing up to financial distress
It is not just academic though – there have been increased reports of people feeling distressed because of financial pressures.
When people are under extreme financial pressure, that has implications for their wellbeing more broadly. I mean, I think that is understood. And I’m sure that the governor in accepting that meeting understands that.
What we want to do as government is make life a little bit easier for people where we can, whether it’s with energy bills, whether it’s with cheaper early childhood education, cheaper medicines, trying to get wages moving again, financial security is a big part of what we’re focused on, particularly when these cost-of-living pressures are so acute.
Continue reading...The RBA governor has ditched his hawkish tone and the odds now seem to favour just one more rise, probably in April – but that could change
There are, as Reserve Bank governor Philip Lowe reminded us as he announced a record 10th consecutive interest rate rise, “a range of potential scenarios for the Australian economy”.
One scenario, it seems, involves interest rates not rising much further. In fact, the RBA’s pre-Easter gathering on 4 April may mark the final rate hike in this cycle.
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Continue reading...Australian software company to cut about 500 jobs, representing 5% of its workforce. Follow the day’s news
Climate change minister: many industries cannot comply with emissions reduction without offsets
What about what David Pocock wants – limits on the number of carbon credits big polluters can use? Chris Bowen says:
My position publicly is the same as it is privately – that if you put hard caps on carbon credits when you’re requiring 4.9% emissions reduction each and every year, then that is a problem, because you’ve got industries which won’t be able to comply with that without without accessing [credits].
Now, people say you can’t offset your way to net zero and you can’t offset your way to the 1.5 degrees. And I agree with that.
Mr Bandt with respect says ‘well, there’s this pipeline of projects and Labor wants to approve them’, now that is not the case.
What there is, is a register of projects which companies have … filled in and said one day we might want to develop this or we’re interested in developing this … many of them are yet to get environmental approvals, finished final investment, decisions for board approval, insurance, finance, etc.
Continue reading...Falling gas prices and CPI decline could boost public finances before 2024 general election
Britain’s inflation rate could fall to below 2% by the end of the year, according to new financial industry forecasts, handing the chancellor a boost to the public finances before a general election in 2024.
Predictions that falling gas prices will accelerate the decline this year in the consumer prices index (CPI) from last month’s level of 10.1% could also support a recovery in household living standards and persuade the Bank of England to cut interest rates earlier than expected.
Continue reading...Majority believe government at least partially to blame for rises but don’t assume Coalition would manage them better
A majority of voters believe the Reserve Bank of Australia has overreacted in jacking up interest rates to tame inflation, and people worry economic conditions will get worse over the next 12 months, according to the latest Guardian Essential poll.
The latest survey of 1,044 voters demonstrates cost-of-living pressure is starting to bite in the community after nine consecutive cash rate hikes.
Continue reading...When the governor and colleagues faced the economics committee, rates were the focus – how high will they go, and will they stall the economy?
Reserve Bank governor Philip Lowe and fellow senior executives fronted the economics committee of the House of Representatives on Friday for about three hours.
Here are six things we learned.
Continue reading...Domain chief Jason Pellegrino says decline is worse than during Covid lockdowns and banking royal commission
A collapse in the number of new homes on the market, especially in Sydney and Melbourne, is outpacing even the shaky listing rates recorded during pandemic lockdowns, weighing on the profits of real estate companies.
The chief executive of property portal company Domain Group, Jason Pellegrino, said on Thursday that the scale of listings declines during the last three months of 2022 also eclipsed pullbacks recorded during the banking royal commission, which scrutinised lending practices in public hearings in 2018.
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Continue reading...Lost in the questioning from hostile senators was much insight into why the Reserve Bank wants to keep raising rates
There’s no doubt the Reserve Bank governor Philip Lowe’s appearance before Senate estimates on Wednesday was good theatre.
Dubbed by one media outlet as Australia’s “most-loathed banker”, Lowe parried questions from mostly hostile senators demanding to know why the central bank had inflicted a record nine interest rate rises in a row, with more to come.
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Continue reading...RBA boss tells Senate estimates about rationale for rate rises as Adam Bandt demands end to new coal and gas projects. Follow live
Around and around we go …
So CBA shareholders are to get a (fully franked) dividend of $2.10 for each of their share – 20% more than the last time dividends were sent out.
We reported strong financial and operational performance in our financial results for the six months ended 31 December 2022. Our cash net profit after tax of $5,153 million reflects the Bank’s customer focus and disciplined strategic execution. Our continued balance sheet strength and capital position creates flexibility to support our customers and manage potential economic headwinds, while delivering sustainable returns to shareholders. A fully franked interim dividend of $2.10 per share was determined, an increase of 20% on 1H22, driven by organic capital generation and a reduction in share count from share buy-backs. Despite the current uncertainty, your Board and management feel optimistic for the future and are committed to delivering for our customers and for you, our shareholders
Continue reading...Further rate rises, Reserve Bank strategy, transparency and whether to extend Lowe’s term are likely to come under scrutiny
When Philip Lowe fronts Senate estimates on Wednesday and the House of Representatives’ economics committee on Friday, the governor of the Reserve Bank of Australia will be peppered with questions about the central bank’s performance and thinking.
Here are four key issues he and his RBA colleagues will likely be asked about during the review of the central bank.
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Continue reading...Critics of project left frustrated and ‘ignored’ by previous government’s failure to heed views of regional communities. Follow the day’s news live
Joyce v Plibersek
Can there be a greater punishment than being the Labor MP chosen to “debate” Barnaby Joyce on commercial TV each week?
Well this Treasury analysis shows that price rises will be moderated, they won’t go up as much as was initially predicted and that’s because our policies are working, and it’s a shame that Barnaby and his side actually voted against the policies that have brought down energy prices in Australia, on top of not doing anything when they were in government to prepare for these energy price rises.
But we know that families are still doing is tough and that’s why we’re also delivering cheaper medicine, cheaper childcare, free Tafe and higher wages.
Well, you just heard it there. It’s the great swindle. Remember they said they were going to bring down the price of electricity by $275. Now they’re lauding the fact that it’s still going up and it will continue to go up, and at some time in the future, listen to this, it won’t go up as much as they expected it to. Now if you think that is worth banking, good luck.
As everything, you will see Liddell get blown up* and this will be under the Labor party’s watch, another power station literally blown up, another restriction on power supplies as we reduce supply and increase price. And I don’t see anything marvellous happening in the future except a Labor party which thinks that the way to fix power prices is to cap the two evils. Remember they don’t believe in coal or gas, but they do believe in capping it because they do understand all of a sudden that it is absolutely connected to power prices.
Continue reading...Quitting the EU has stalled business investment, making us reliant on workers who are now scarce. Hence rising wages, high inflation and increased interest rates. Result? A looming recession
Whenever Andrew Bailey, the governor of the Bank of England, talks about the economy, he is forced to mention the toll taken by Brexit.
Business leaders, initially reluctant to criticise the Tory decision to quit the EU, have begun to find their voice. Most recently, leading City figure Guy Hands called Brexit a “complete disaster” and a “bunch of total lies” that has harmed large parts of the economy.
Continue reading...