Category Archives: Reserve Bank of Australia

Eight more Australians leave West Bank – as it happened

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Military deployment to Middle East will be for evacuation of Australians

Defence minister Richard Marles was asked on Today what the role of the aircraft and troops sent to the Middle East would be.

We’ve made our position really clear.

Israel has a right to defend itself and to move against Hamas. What is absolutely essential in doing that is that the protection from the centre and and all the steps that Israel takes, and that the rules of war are adhered to and we’ve been making that very clear, as well.

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Grim end to year predicted for Labor with high chance of at least two more interest rate rises

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Strong quarterly inflation figures sends market scrambling as odds on for interest rate hike at Reserve Bank’s Melbourne Cup Day meeting

The Albanese government looks set for a dismal end to 2023 with the looming prospect of two Reserve Bank interest rate rises, compounding the disappointment of the failed voice referendum.

Wednesday’s surprisingly strong September quarter inflation figures prompted many economists to jettison views that official interest rates had peaked. Investors now price the odds of another quarter-point RBA hike to 4.35% on 7 November at 80%, doubling in a day, according to Bloomberg.

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Australia’s inflation rate rose 1.2% in September quarter boosted by higher fuel prices

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Quarterly CPI was higher than economists’ expectations and will increase speculation that the Reserve Bank may again raise interest rates

Australia’s inflation rate quickened in the September quarter, boosted by higher petrol prices, adding to pressure on the Reserve Bank to hike interest rates again.

The headline consumer price index rose 1.2% in July-September, up from 0.8% in the June quarter, the Australian Bureau of Statistics reported on Wednesday. Economists had expected the quarterly rate to come in 1.1%.

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The RBA has left its key interest unchanged at 4.1% for the past four months. Ahead of today’s inflation numbers, markets were pricing in about a one-in-three chance that the central bank would lift the cash rate to 4.35% at the 7 November meeting.

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Petrol prices spiked 7% in September quarter and there’s more pain to come, Australian treasurer suggests

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Costs could rise as conflict between Israel and Hamas in the Middle East worsens, Jim Chalmers warns

Australians are feeling the impact of inflation at the petrol pump with the latest data expected to show fuel prices rose by more than 7% in the three months to the end of September.

Treasury estimates the latest consumer price index data for the September quarter, to be released on Wednesday, will reveal the soaring cost of petrol brought on by global factors including the war in Ukraine, supply constraints and the weaker Australian dollar.

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RBA’s top two executives saw 10% pay increase over past year, report reveals

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Annual report notes Philip Lowe and Michele Bullock’s remuneration increase was recommended by an independent committee

The Reserve Bank’s top two executives clocked up remuneration gains of more than 10% in the past year, or not far shy of twice the inflation rate.

During his final year as governor, Philip Lowe took home $1,147,465 in base pay, bonuses, superannuation and other payments. That sum was about 10.5% higher than a year earlier, according to the bank’s annual report, which released on Thursday.

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Inflation uptick increases risk of another RBA interest rate rise, economists say

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First Reserve Bank meeting under new governor Michele Bullock has the potential to surprise after CPI spike

Australia’s inflation rate has picked up again, increasing the risk households will need to endure yet another rate rise before Christmas.

While most traders and economists expect the Reserve Bank board will keep the official cash rate steady at 4.1% when they gather on Tuesday, that outcome is not set in stone and the meeting has the potential to surprise.

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Integrity expert says officials should turn down Qantas Chairman’s Lounge memberships

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Memberships of the heads of the Reserve Bank and the Productivity Commission further evidence of airline’s soft power among political decision-makers

The incoming Reserve Bank governor, Michele Bullock, and outgoing chair of the Productivity Commission, Michael Brennan, are members of Qantas’s high-end Chairman’s Lounge – an invitation-only perk a top public integrity expert says officials should turn down.

The memberships, contained in the gifts and benefits registers of the agencies, show how the airline has used its soft diplomacy to build relationships in Australia’s most important institutions, including the competition and corporate regulators and aviation safety authority.

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Australian economy adds 65,000 jobs in August, raising prospect of further rate hikes

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Unemployment rate remains steady at 3.7% in a sign that the economy could avoid a hard landing as impact of 12 interest rate rises is felt by households

Employers hired almost 65,000 more workers in August, many more than expected, improving the prospects that the economy will avoid a hard landing but also raising the possibility the Reserve Bank may hike interest rates again.

The unemployment rate last month was 3.7%, the Australian Bureau of Statistics said on Thursday. Economists had forecast the economy would add 25,000 jobs in August, which would have left the jobless rate at July’s reported level of 3.7%.

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Outgoing RBA governor Philip Lowe says tough decisions made him ‘very unpopular’

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At a speech in Sydney, Philip Lowe has said some of his economic explanations ‘missed the mark’ but that media should avoid ‘clickbait’

Philip Lowe has used his final public comments as governor of the Reserve Bank to defend his more controversial comments, saying while some of his explanations had “missed the mark” the media also had a responsibility to avoid “clickbait”.

“Raising interest rates and tightening policy can make you very unpopular, as I know all too well,” Lowe told a Sydney function on Thursday for the Anika Foundation. “This means that it is easier for an independent central bank to do this than it is for politicians.”

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The RBA’s interest rate-rising looks done – and a soft landing for the economy could be on

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Australia’s economy might be just where Philip Lowe wants it – barring any nasty surprise – as he hands over to Michele Bullock

As two of Australia’s more contentious figures Philip Lowe and Alan Joyce head towards their gilded departure lounges, the economy seems set in a holding pattern with improving prospects of a desired soft landing.

To be sure, a happy outcome of a jobless rate remaining within cooee of 4%, wages finally catching if not outpacing inflation, and even the federal budget staying in the black a bit longer is far from assured.

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Australia politics live: RBA interest rates decision today; question time under way

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Follow today’s live news updates

The corporate regulator is suing Westpac after it allegedly failed to appropriately respond to hundreds of financial hardship requests from bank customers.

The Australian Securities and Investments Commission (Asic) said in a statement on Tuesday it had started civil proceedings in the federal court seeking financial penalties to be imposed on the major bank.

All of these customers told Westpac they were experiencing financial hardship.

Many of these customers also told Westpac about their difficult circumstances and vulnerabilities, including their inability to work, the impacts of serious medical conditions or their carer responsibilities.

This error meant we didn’t provide some of our customers with the help they needed. For this, we are deeply sorry.

The broader picture here is the we’re seeing big corporations at the moment making record profits off the back of everyday people, these big corporations line up to public handouts when the going gets tough and then when they get back into a more healthy situation, they just pocket the profits and they pass the costs on to everyday people and we think it’s time to say enough is enough and it’s time for these big corporations [to be] made to act in the public interest and that’s government’s job.

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Climate crisis to create ‘acute’ challenges for Australia’s economy, incoming RBA governor says

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Michele Bullock uses speech to detail how central bank is preparing for increased risk of extreme weather events

Global heating will present the Reserve Bank with “acute” challenges, including heightened uncertainty around how the climate will change and the resulting impacts on the economy and financial system, the incoming governor, Michele Bullock, has said.

Bullock, now deputy RBA governor before her elevation to the top post on 18 September, used her Sir Leslie Melville lecture at the Australian National University on Tuesday – after a brief disruption from protesters – to detail how the central bank was preparing for a warming world and the increased risk of extreme weather events.

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Labor to meet Greens over housing bill – as it happened

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RFS predicts severe bushfire season to come

Firefighters are scrambling to catch up on bushfire preparations as NSW braces for a hot summer, AAP reports.

The No 1 factor for that not going ahead was the weather conditions, the rain, the flooding, that’s meant the crews weren’t able to get out and do that important work in communities.

There is plenty more to be done and this boost in mitigation personnel will enable even more vital work to be undertaken.

This is a tragedy. Our thoughts are with the family and friends of the Australian Defence Force personnel on board. All were from the 6th Aviation Regiment based at Holsworthy army barracks in Sydney and valuable members of our community.

Our thoughts are also with those who served alongside these four young men – their friends and colleagues in uniform – and the broader defence community.

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Sydney leads Australia’s house price rebound with $500 a day ‘hyper-growth’

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Domain data shows fastest national rise since late 2021 and all capitals bar Canberra in recovery mode

Australia’s home price rebound quickened in the June quarter, lifting house values at the fastest rate since late 2021. For Sydney, median house prices rose $500 a day during the first half of 2023, returning to “hyper-growth”, Domain said.

Since last December’s nadir, house prices across capital cities have risen $34,000, or 3.4%, clawing back slightly more than the $60,000 lost during 2022.

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News live updates: hundreds charged after NSW domestic violence operation; South Australia moves to ban no cause evictions

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Four-day operation results in 1,107 domestic violence charges being laid against 592 people. Follow live

‘Textbook fiscal policy’ from Labor about getting economy ‘in nick’

Chalmers is asked whether it’s possible to control inflation without the unemployment rate growing further.

Remains to be seen.

We’ve got the budget in better nick, not the expense of the economy but in addition, and cost-of-living help is targeted in out-of-pocket health costs, electricity, rent and some particular pressure points. We found $40 billion of savings over two budgets compared to zero in savings in the last Liberal budget.

So all of those things are about get getting the economy in nick at the same time we provide help for people to get through through a difficult period.

The point that Michele Bullock was making in that speech, which, again, I think is relatively uncontroversial, is that as the Reserve Bank forecast and the treasury forecasts, have inflation moderating in coming months, they have a tick-up in unemployment. I’ve been upfront. The challenges in the economy are unsubstantial, globally and domestically, I think the slow-down is expected in the forecasts to be significant. That will have implications for the unemployment rate, which is the point that Michele Bullock was making.

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Michele Bullock spells continuity at RBA – but respite unlikely for borrowers

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The new chief was one of the board members raising interest rates, but has been brought in to reform the central bank

When the Albanese government announced Michele Bullock as the next Reserve Bank governor on Friday, few were particularly surprised – and that was the plan.

Sure, the opposition leader, Peter Dutton, got on the front foot the previous day, prematurely warning against choosing a public servant. The treasurer, Jim Chalmers, had shared his shortlist with his shadow, Angus Taylor, but held back Bullock as his pick.

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Government ‘realistic’ about chances in Fadden – as it happened

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Stakes are high in contest for Queensland seat. This blog has now closed

Singleton Roosters to play their first game since tragic bus accident

NSW premier Chris Minns is in Cessnock today, where he will attend the first games of the women’s and men’s Singleton Roosters Australian rules football teams since the bus tragedy that rocked the community in June.

For the rest of winter and into spring, there’s a very high chance of above average temperatures, and actually quite a high chance of unusually warm temperatures as well.

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RBA lifer Michele Bullock may have the luck of playing good cop to Philip Lowe’s bad

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The Reserve Bank of Australia’s first female governor will begin her appointment at or very near the end of the cycle of rate rises

Australia will get its first female Reserve Bank governor, Michele Bullock, and the order of the day is continuity with change.

Continuity because Bullock is an extremely well qualified RBA lifer with four decades of experience.

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Nationals accuse Labor of ‘hypocrisy’ over response to scathing APVMA report – as it happened

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Cabinet meeting to decide Lowe’s successor today

Philip Lowe will be replaced as the Reserve Bank governor, with today’s cabinet meeting to decide his successor, Guardian Australia has confirmed.

If I was asked to continue in the role, I would be honoured to do that and I would continue.

If I am not asked to continue in the role, I will do my best to support my successor, and the treasurer has said he will make an announcement before the end of this month.

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Next RBA governor should not be a senior public servant, Peter Dutton says

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Speculation mounts Cabinet will sign off on decision on Friday, as Liberal leader says position should have no connection to government

A senior public servant should not be appointed the next Reserve Bank of Australia governor in order to avoid any connection with past governments, the opposition leader, Peter Dutton, says.

As speculation mounts the government is set to sign off on the appointment at a Cabinet meeting on Friday, Dutton said the potential successor should not come from the public service.

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