Latest news with #Bullock
West Australian
2 hours ago
- Business
- West Australian
‘No magic wand': RBA explains what they are looking for ahead of next rate call
A tight labour market blocked a rate cut in July, but the RBA boss says Australians won't have to choose between a job and rate relief. In her speech at the Anika Foundation Fundraising lunch on Thursday, RBA governor Michele Bullock revealed what the central bank will be looking for when it meets in August to discuss the cash rate. She said the board was not looking for outright mass job losses, but a gradual easing in labour market conditions that has so far been most evident in fewer job vacancies, reductions in hours worked and declining rates of voluntary job switching. 'These shifts aren't without their challenges, but they all tend to be less disruptive than outright job losses,' she said. Pointing to last week's ABS labour market data, she said the spike in job losses, from 4.1 to 4.3 per cent, was not the silver bullet for future rate cuts that experts forecast. 'Some of the coverage of the latest data suggested this was a shock – but the outcome for the June quarter was in line with the forecast we released in May,' she said. She explained looking only at labour market movements, there were more outright job losses than the RBA had forecast, but other measures such as the vacancy rates were in line with previous central bank predictions. 'More broadly, leading indicators are not pointing to further significant increases in the unemployment rate in the near term,' she said. Ms Bullock said while the board's remit was to balance employment with price stability, the central bank wasn't necessarily looking for job losses. 'I should note the RBA can't wave a magic wand and control how adjustments in the labour market play out. Interest rates are too blunt an instrument for that.' 'Losing a job can be one of the most stressful events in someone's life, and it can have far-reaching implications for families and communities,' she said. Ms Bullock's speech reinforces the message from the minutes of the RBA's monetary policy board meeting, released on Wednesday, where the central bank revealed a tight labour market was the key blocker of further rate cuts. 'Recent monthly CPI indicator data – which can be volatile and does not cover all items in the CPI – were broadly consistent with this expectation,' the RBA board said. But with more Australians currently in work, the RBA was wary the strong employment figures could lead to an increase in inflation. 'The labour market was assessed to have remained tight, with measures of labour utilisation little changed over the prior year,' it said. 'Growth in private demand had begun to recover, but was still subdued.' A cautious RBA monetary board held the official cash rate at 3.85 per cent following its July meeting, with the shock move defying expert commentators and predictions from the money markets. The board voted 6-3 in favour of the hold. 'A minority of members judged that there was a case to lower the cash rate target at this meeting,' the board said. 'These members placed more weight on downside risks to the economic outlook – stemming from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia.' The RBA monetary policy board will next meet on August 12, with money markets widely forecasting a rate cut.
Perth Now
2 hours ago
- Business
- Perth Now
RBA boss gives major rates clue
A tight labour market blocked a rate cut in July, but the RBA boss says Australians won't have to choose between a job and rate relief. In her speech at the Anika Foundation Fundraising lunch on Thursday, RBA governor Michele Bullock revealed what the central bank will be looking for when it meets in August to discuss the cash rate. She said the board was not looking for outright mass job losses, but a gradual easing in labour market conditions that has so far been most evident in fewer job vacancies, reductions in hours worked and declining rates of voluntary job switching. RBA governor Michele Bullock explains what the RBA wants to see from the jobs market. Christian Gilles / NewsWire Credit: News Corp Australia 'These shifts aren't without their challenges, but they all tend to be less disruptive than outright job losses,' she said. Pointing to last week's ABS labour market data, she said the spike in job losses, from 4.1 to 4.3 per cent, was not the silver bullet for future rate cuts that experts forecast. 'Some of the coverage of the latest data suggested this was a shock – but the outcome for the June quarter was in line with the forecast we released in May,' she said. She explained looking only at labour market movements, there were more outright job losses than the RBA had forecast, but other measures such as the vacancy rates were in line with previous central bank predictions. 'More broadly, leading indicators are not pointing to further significant increases in the unemployment rate in the near term,' she said. Ms Bullock said while the board's remit was to balance employment with price stability, the central bank wasn't necessarily looking for job losses. 'I should note the RBA can't wave a magic wand and control how adjustments in the labour market play out. Interest rates are too blunt an instrument for that.' 'Losing a job can be one of the most stressful events in someone's life, and it can have far-reaching implications for families and communities,' she said. Ms Bullock's speech reinforces the message from the minutes of the RBA's monetary policy board meeting, released on Wednesday, where the central bank revealed a tight labour market was the key blocker of further rate cuts. 'Recent monthly CPI indicator data – which can be volatile and does not cover all items in the CPI – were broadly consistent with this expectation,' the RBA board said. Ms Bullock warns strong jobs growth can impact inflation. NewsWire / Nicholas Eagar Credit: NewsWire But with more Australians currently in work, the RBA was wary the strong employment figures could lead to an increase in inflation. 'The labour market was assessed to have remained tight, with measures of labour utilisation little changed over the prior year,' it said. 'Growth in private demand had begun to recover, but was still subdued.' A cautious RBA monetary board held the official cash rate at 3.85 per cent following its July meeting, with the shock move defying expert commentators and predictions from the money markets. The board voted 6-3 in favour of the hold. 'A minority of members judged that there was a case to lower the cash rate target at this meeting,' the board said. 'These members placed more weight on downside risks to the economic outlook – stemming from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia.' The RBA monetary policy board will next meet on August 12, with money markets widely forecasting a rate cut.
Perth Now
3 hours ago
- Business
- Perth Now
Shares flat as Aussie dollar hits eight-month high
The local share market is treading water as traders wait to hear what Reserve Bank governor Michele Bullock says about inflation and jobs, while the local currency has climbed to an eight-month high. Near noon on Thursday the benchmark S&P/ASX200 index was down 2.8 points, or 0.03 per cent, to 8,835.5, while the broader All Ordinaries had dipped by less than half a point to 9,001.0. Ms Bullock is set to address the youth mental health charity Anika Foundation in the early afternoon at its annual fundraising lunch, with a speech titled "The RBA's Dual Mandate - Inflation and Employment". NAB head of market economics Tapas Strickland noted past RBA speeches to the Anika Foundation had been informative. There were also growing expectations for a US-EU trade deal along the lines of a US-Japan pact announced earlier in the week, Mr Strickland said. The Australian dollar had moved above 66 US cents for the first time since November 8, trading for 66.09 US cents, from 65.65 US cents at 5pm on Wednesday. NAB economist Pat Bustamante said risk currencies including the Aussie had benefited from a risk-on tone overnight as trade tensions eased. Six of the ASX's 11 sectors were lower and three were higher, with financials and tech flat. Health care was the bigger mover, rising 1.0 per cent as CSL advanced 1.5 per cent, Clarity Pharma added 9.7 per cent and Neuren Pharmaceuticals climbed 6.8 per cent. In the consumer discretionary sector, Bapcor had plunged 28.4 per cent to a five-year low of $3.66 after the aftermarket auto parts retailer posted disappointing sales in May and June, said it would write off around $43 million in assets and announced the resignations of three directors. No reason was given. On the flip side, Pexa Group had soared 16.4 per cent to $15.07 after the digital property exchange announced leading UK bank NatWest had agreed to facilitate future remortages on Pexa's platform. In the financial sector, Macquarie had dropped 4.4 per cent as the investment bank held its annual general meeting and announced a drop in first-quarter net profit. As for the big four retail banks, ANZ was down 0.1 per cent while NAB had added 0.9 per cent, with Westpac and ANZ both growing 0.4 per cent. In the heavyweight mining sector, BHP was basically flat, Rio Tinto had added 0.4 per cent and Fortescue had climbed 3.5 per cent as the iron ore giant announced record shipments in 2024/25. Goldminers were in the red as the yellow metal changed hands at $US3,447, down about $7 from Wednesday. Northern Star had dropped 2.5 per cent, Evolution had retreated 3.2 per cent and Regis Resources had lost 3.7 per cent. PNG copper miner Bougainville Copper had soared 20.2 per cent to a one-and-a-half-year high of 77.5 cents, for reasons not immediately clear. Calix Limited had rocketed 26.7 per cent to 66.5 cents the environmental technology company announced the Australian Renewable Energy Agency had awarded it a $44.9 million grant to fund its "green iron" demonstration plant.
Economic Times
2 days ago
- Business
- Economic Times
Cryptocurrency Live News & Updates : Smart Money Faces $12.48M Losses on Altcoin Shorts
22 Jul 2025 | 12:55:12 AM IST A smart money address, known as @ai_9684xtpa, is experiencing unrealized losses of $12.48 million after shorting various altcoins, following a recent market rally. In the latest cryptocurrency news, a smart money address has reported significant unrealized losses of $12.48 million due to short positions on altcoins, as the market has surged. Meanwhile, BNB has dipped below 760 USDT, showing only a slight increase of 1.23% in the last 24 hours. On a more positive note, the Blockchain Group has added 22 Bitcoin to its holdings, achieving an impressive 1,373% yield year-to-date, with its total BTC holdings now valued at $233.5 million. Bitcoin itself has seen a modest rise of 1.21% in the past day, trading close to the $120,000 mark. Additionally, the Thai SEC is considering easing testing requirements for retail crypto investors, aiming to reduce burdens while ensuring investment risks are aligned with product risks. Lastly, the Reserve Bank of Australia faces scrutiny as it holds interest rates steady despite weak inflation, with upcoming policy meeting minutes and a speech from Governor Bullock expected to provide clarity on future monetary policy decisions. These developments highlight the dynamic nature of the cryptocurrency market and regulatory landscape. Show more
Time of India
2 days ago
- Business
- Time of India
Cryptocurrency Live News & Updates : Smart Money Faces $12.48M Losses on Altcoin Shorts
22 Jul 2025 | 12:55:12 AM IST A smart money address, known as @ai_9684xtpa, is experiencing unrealized losses of $12.48 million after shorting various altcoins, following a recent market rally. In the latest cryptocurrency news, a smart money address has reported significant unrealized losses of $12.48 million due to short positions on altcoins, as the market has surged. Meanwhile, BNB has dipped below 760 USDT, showing only a slight increase of 1.23% in the last 24 hours. On a more positive note, the Blockchain Group has added 22 Bitcoin to its holdings, achieving an impressive 1,373% yield year-to-date, with its total BTC holdings now valued at $233.5 million. Bitcoin itself has seen a modest rise of 1.21% in the past day, trading close to the $120,000 mark. Additionally, the Thai SEC is considering easing testing requirements for retail crypto investors, aiming to reduce burdens while ensuring investment risks are aligned with product risks. Lastly, the Reserve Bank of Australia faces scrutiny as it holds interest rates steady despite weak inflation, with upcoming policy meeting minutes and a speech from Governor Bullock expected to provide clarity on future monetary policy decisions. These developments highlight the dynamic nature of the cryptocurrency market and regulatory landscape. Show more
