Reserve Bank minutes in focus after shock rate decision
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth.
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth.
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth.
Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut.
The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12.
Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print.
The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday.
Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year.
Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage.
In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows.
The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones.
While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said.
"Australia's infrastructure boom isn't over," he said.
"But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AU Financial Review
7 hours ago
- AU Financial Review
Transport for NSW slashes another 950 white-collar jobs
The New South Wales transport department will slash a further 950 white-collar roles as part of a cull that is reducing the size of its bureaucracy by almost 10 per cent. In an email to staff on Wednesday, Transport for NSW secretary Josh Murray said the job cuts were part of 'financial sustainability reforms' after the department grew 30 per cent – or by about 3000 people – in the aftermath of the COVID-19 pandemic.
Herald Sun
11 hours ago
- Herald Sun
Modest Williamstown home sells for $5m
A Williamstown home has changed hands for $5m, making it the highest residential sale in the bayside suburb so far this year. The four-bedroom property at 38 Hanmer St crack the $5m mark, where a comparable property recently sold for $4.6m. The home was combined with an architect-designed two-bedroom residence built from a converted garage during the Covid pandemic. RELATED: Call to give Boomers $1m housing tax cut Future of $150m Docklands project revealed Grim truth about Vic's noisiest suburbs The Agency Williamstown's Noah Lautman-Wurt said it was the flexible second dwelling that helped elevate interest beyond the usual premium benchmark. 'The front house had already been renovated to a very high standard, but the rear dwelling really offered that extra layer of flexibility that's so rare, whether for multigenerational living, renting out, or guests,' Mr Lautman-Wurt said. Designed by Roam Architects, the rear home — dubbed the 'Small House' — includes two bedrooms, two bathrooms, sculptural ceilings, a full kitchen and private courtyard, with Murphy bed functionality and adaptable zones that can serve as a home office, guest wing or teen retreat. Built by the owner, a local builder who had lived in the property for more than a decade, it was originally a garage before being transformed during Melbourne's Covid lockdowns. Mr Lautman-Wurt said the level of finish and maintenance across both dwellings gave buyers added confidence. 'It gave buyers confidence, this wasn't a cosmetic update or a flip,' he said. The Agency agent confirmed the home had sold to a local family who were drawn to the lifestyle and separation the layout allowed, particularly for ageing parents or older children still living at home. The front home retains its period character with high ceilings, ornate details and a skylit ensuite, but adds a freestanding tub, a solar-heated pool and spa, hydronic heating and stone finishes throughout, including an oversized family kitchen. Mr Lautman-Wurt said the campaign had been emotional for the sellers, who had raised their children in the home and lived in both dwellings across different seasons of life. 'The energy in the house was beautiful,' he said. He added the $5m result reflected continued strength in Williamstown's prestige market, with a small pool of buyers waiting for standout homes with land, heritage and modern liveability. 'There's always been a group of buyers waiting for the right home at this level, and they're willing to act when something like this comes up,' he said. The sellers are now downsizing, with the sale paving the way for their next chapter. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Scott Cam slams 'whingeing' Block couples Abandoned house beats price hopes at auction Iconic Melb barber shop hits market after 60 years
The Advertiser
11 hours ago
- The Advertiser
Online shopping rebounds as rate cut talk opens wallets
With pressure easing on hip pockets, Australians are splurging more online but some remain wary of being stung by interest rate speculation. Shoppers spent $19.2 billion online from the start of April to the end of June, up 15 per cent compared to the same period in 2024, Australia Post's quarterly e-commerce report reveals. About 7.9 million Australian households made a purchase over the web in the quarter, which was capped by end-of-financial-year (EOFY) sales. Online consumers were more willing to spend than 12 months ago due to inflation easing and impending rate cuts. "With inflation cooling and consumer confidence returning, we're seeing more Australians shop online, with higher expectations," Australia Post's Chelsea O'Reilly said. "Shoppers are spending more, but they're also expecting more in the way of speed, convenience and value." Millennials led the online splurge, coughing up $6.9 billion in the quarter, followed by Generation X who handed over $5.3 billion. Generation Z forked out $3.4 billion while Baby Boomers spent $2.8 billion. Jen Lele, a millennial mother of three, took advantage of the EOFY sales to stock up on kids' clothes, household essentials and gifts for birthdays of her children's friends. The 39-year-old home-owner from Melbourne's southeast said it felt like the right time to splurge, given talk of a possible interest rate cut. "Anyone who owns a house took a bit of hit last year so there were things that weren't able to be purchased," she told AAP. "When my husband and I had heard the interest rates may be better ... we jumped on that." Ms Lele, who works in the retail industry, said she was surprised earlier in July when the Reserve Bank decided to keep rates on hold at 3.85 per cent. Burned by the board's cautious approach, she has moved to a "wait and see" mode on unnecessary online buys for the time being. "Hopefully we'll see a rate cut closer to Christmas which will obviously help everyone," Ms Lele said. Online marketplaces, food and liquor, and fashion claimed the biggest shares of online sales in the quarter, while spending on online department stores shot up 28 per cent year-on-year to $1 billion. The average basket size shrunk slightly to $96. Queensland regionals centres Toowoomba, Mackay, and Bundaberg had the nation's biggest quarterly parcel volumes, with Point Cook in Melbourne's west and Mandurah south of Perth rounding out the top five. With pressure easing on hip pockets, Australians are splurging more online but some remain wary of being stung by interest rate speculation. Shoppers spent $19.2 billion online from the start of April to the end of June, up 15 per cent compared to the same period in 2024, Australia Post's quarterly e-commerce report reveals. About 7.9 million Australian households made a purchase over the web in the quarter, which was capped by end-of-financial-year (EOFY) sales. Online consumers were more willing to spend than 12 months ago due to inflation easing and impending rate cuts. "With inflation cooling and consumer confidence returning, we're seeing more Australians shop online, with higher expectations," Australia Post's Chelsea O'Reilly said. "Shoppers are spending more, but they're also expecting more in the way of speed, convenience and value." Millennials led the online splurge, coughing up $6.9 billion in the quarter, followed by Generation X who handed over $5.3 billion. Generation Z forked out $3.4 billion while Baby Boomers spent $2.8 billion. Jen Lele, a millennial mother of three, took advantage of the EOFY sales to stock up on kids' clothes, household essentials and gifts for birthdays of her children's friends. The 39-year-old home-owner from Melbourne's southeast said it felt like the right time to splurge, given talk of a possible interest rate cut. "Anyone who owns a house took a bit of hit last year so there were things that weren't able to be purchased," she told AAP. "When my husband and I had heard the interest rates may be better ... we jumped on that." Ms Lele, who works in the retail industry, said she was surprised earlier in July when the Reserve Bank decided to keep rates on hold at 3.85 per cent. Burned by the board's cautious approach, she has moved to a "wait and see" mode on unnecessary online buys for the time being. "Hopefully we'll see a rate cut closer to Christmas which will obviously help everyone," Ms Lele said. Online marketplaces, food and liquor, and fashion claimed the biggest shares of online sales in the quarter, while spending on online department stores shot up 28 per cent year-on-year to $1 billion. The average basket size shrunk slightly to $96. Queensland regionals centres Toowoomba, Mackay, and Bundaberg had the nation's biggest quarterly parcel volumes, with Point Cook in Melbourne's west and Mandurah south of Perth rounding out the top five. With pressure easing on hip pockets, Australians are splurging more online but some remain wary of being stung by interest rate speculation. Shoppers spent $19.2 billion online from the start of April to the end of June, up 15 per cent compared to the same period in 2024, Australia Post's quarterly e-commerce report reveals. About 7.9 million Australian households made a purchase over the web in the quarter, which was capped by end-of-financial-year (EOFY) sales. Online consumers were more willing to spend than 12 months ago due to inflation easing and impending rate cuts. "With inflation cooling and consumer confidence returning, we're seeing more Australians shop online, with higher expectations," Australia Post's Chelsea O'Reilly said. "Shoppers are spending more, but they're also expecting more in the way of speed, convenience and value." Millennials led the online splurge, coughing up $6.9 billion in the quarter, followed by Generation X who handed over $5.3 billion. Generation Z forked out $3.4 billion while Baby Boomers spent $2.8 billion. Jen Lele, a millennial mother of three, took advantage of the EOFY sales to stock up on kids' clothes, household essentials and gifts for birthdays of her children's friends. The 39-year-old home-owner from Melbourne's southeast said it felt like the right time to splurge, given talk of a possible interest rate cut. "Anyone who owns a house took a bit of hit last year so there were things that weren't able to be purchased," she told AAP. "When my husband and I had heard the interest rates may be better ... we jumped on that." Ms Lele, who works in the retail industry, said she was surprised earlier in July when the Reserve Bank decided to keep rates on hold at 3.85 per cent. Burned by the board's cautious approach, she has moved to a "wait and see" mode on unnecessary online buys for the time being. "Hopefully we'll see a rate cut closer to Christmas which will obviously help everyone," Ms Lele said. Online marketplaces, food and liquor, and fashion claimed the biggest shares of online sales in the quarter, while spending on online department stores shot up 28 per cent year-on-year to $1 billion. The average basket size shrunk slightly to $96. Queensland regionals centres Toowoomba, Mackay, and Bundaberg had the nation's biggest quarterly parcel volumes, with Point Cook in Melbourne's west and Mandurah south of Perth rounding out the top five. With pressure easing on hip pockets, Australians are splurging more online but some remain wary of being stung by interest rate speculation. Shoppers spent $19.2 billion online from the start of April to the end of June, up 15 per cent compared to the same period in 2024, Australia Post's quarterly e-commerce report reveals. About 7.9 million Australian households made a purchase over the web in the quarter, which was capped by end-of-financial-year (EOFY) sales. Online consumers were more willing to spend than 12 months ago due to inflation easing and impending rate cuts. "With inflation cooling and consumer confidence returning, we're seeing more Australians shop online, with higher expectations," Australia Post's Chelsea O'Reilly said. "Shoppers are spending more, but they're also expecting more in the way of speed, convenience and value." Millennials led the online splurge, coughing up $6.9 billion in the quarter, followed by Generation X who handed over $5.3 billion. Generation Z forked out $3.4 billion while Baby Boomers spent $2.8 billion. Jen Lele, a millennial mother of three, took advantage of the EOFY sales to stock up on kids' clothes, household essentials and gifts for birthdays of her children's friends. The 39-year-old home-owner from Melbourne's southeast said it felt like the right time to splurge, given talk of a possible interest rate cut. "Anyone who owns a house took a bit of hit last year so there were things that weren't able to be purchased," she told AAP. "When my husband and I had heard the interest rates may be better ... we jumped on that." Ms Lele, who works in the retail industry, said she was surprised earlier in July when the Reserve Bank decided to keep rates on hold at 3.85 per cent. Burned by the board's cautious approach, she has moved to a "wait and see" mode on unnecessary online buys for the time being. "Hopefully we'll see a rate cut closer to Christmas which will obviously help everyone," Ms Lele said. Online marketplaces, food and liquor, and fashion claimed the biggest shares of online sales in the quarter, while spending on online department stores shot up 28 per cent year-on-year to $1 billion. The average basket size shrunk slightly to $96. Queensland regionals centres Toowoomba, Mackay, and Bundaberg had the nation's biggest quarterly parcel volumes, with Point Cook in Melbourne's west and Mandurah south of Perth rounding out the top five.
