Latest news with #ReserveBankOfAustralia
Yahoo
4 hours ago
- Business
- Yahoo
Australia June retail sales jump as discounts, Nintendo Switch lure shoppers
SYDNEY (Reuters) -Australian retail sales surged in June as the launch of Nintendo's Switch 2 and discounting at the end of the financial year drew consumers back to the shops, though sales volumes for the second quarter as a whole were subdued. Raising hopes that a long-awaited recovery in consumption could be on the way, retail sales jumped 1.2% in June from May, when they rose 0.5%, data from the Australian Bureau of Statistics showed. That was well above forecasts of a 0.4% increase and marked a second straight month of gains as well as the biggest monthly climb since March 2022. "After steady growth throughout the year, mid-year sales events increased spending on discretionary items like furniture, electrical goods and clothing items," said Robert Ewing, the bureau's head of business statistics. "Turnover for electrical and gaming retailers was lifted further by the much-anticipated launch of the Nintendo Switch 2, which delivered record sales." The data is not expected to have much impact on interest rate policy. Investors are pricing in a near-certain chance that the Reserve Bank of Australia could lower its cash rate of 3.85% by a quarter-point next month. Rates are seen bottoming out near 3.1% by early next year. The RBA has cut interest rates by 50 basis points since February, but consumers have stayed stubbornly frugal, choosing to save windfalls from tax cuts rather than spending. Thursday's report showed sales gained across the board, except for spending at cafes and restaurants. Spending on household goods items jumped 2.3% while spending at department stores surged 1.9%. For the quarter, sales volumes edged up 0.3%, better than forecasts for a flat result, but still historically sluggish, especially given strong population growth. It was the last set of data for the retail sales series, which will be replaced by a monthly household spending indicator that covers 68% of household consumption, more than double the retail survey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 hours ago
- Business
- Yahoo
Westpac boss flags RBA interest rate cut win for millions in $350 a month boost
The boss of one of Australia's biggest banks said the case for cutting interest rates in August was stronger following a drop in inflation. Westpac CEO Anthony Miller said markets had now priced in roughly a 90 per cent chance of a cut at the Reserve Bank of Australia's (RBA) meeting in just a few weeks' time. Headline inflation eased to 2.1 per cent from 2.4 per cent in the June quarter, the latest Australian Bureau of Statistics figures revealed. Underlying inflation, the central bank's preferred measure, slowed to 2.7 per cent from 2.9 per cent. Miller said there appeared to be more evidence for cutting interest rates and noted the underlying inflation rate, known as the trimmed mean, was the figure we should 'all fixate on'. RELATED Major hint RBA set to cut interest rates again in $90 per month win for Aussie homeowners Australia's 'ancient enemy' returns sparking major Centrelink warning Centrelink pension warning for 4.3 million Aussies facing super nightmare 'The fact that it wasn't up probably is another data point that reinforces it is open to the Reserve Bank to cut rates,' he told a Trans-Tasman Business Circle event. However, Miller acknowledged a cut wasn't a 100 per cent done deal, considering the RBA's shock decision to hold interest rates at 3.85 per cent this month defied market expectations. 'It feels like there's even more evidence now that they should [cut rates], but I can't help but think that only four weeks ago, everyone was absolutely clear that there was a rate cut coming, and it didn't,' he said. 'I think we're lucky to have a Reserve Bank and a governor with that independence and that confidence to look after the country's long-term interests.'Miller noted the number of the bank's home loan customers who were 90 days behind on their repayments had continued to fall. Westpac is the only one of the Big Four banks that automatically drops repayments for customers paying the minimum amount following rate cuts. CBA, NAB and ANZ customers have to request the change, with the three major banks revealing just one in 10 borrowers had lowered their repayments after the May cut. Westpac expects four more interest rate cuts Westpac chief economist Luci Ellis said the RBA now had confirmation that inflation was on track to return to the midpoint of its 2 to 3 per cent target range and stay there. 'We expect the RBA to cut the cash rate by 25 basis points at its August meeting in a couple of weeks to 3.6 per cent,' she said. 'With the internal members likely switching their votes from hold to cut, we expect the external members who voted to hold in July will also switch to a vote to cut, leading to a unanimous decision.' Ellis said further cuts in November, February and May then look 'increasingly likely', which would bring the cash rate down to 2.85 per cent. "We think this is at the lower end of what could be regarded as neutral, and would reflect the RBA's response to a path for underlying inflation that turns out a little lower than what it forecast in May," she said. Other Big Four banks also expecting more cuts Commonwealth Bank economists said the inflation data 'rubber stamps' a 25 basis point August rate cut. They noted the data was 'very encouraging' and softer than its expectations and the consensus of economists. "We can see a consensus decision forming to cut the cash rate in August after the encouraging CPI report. This follows the 6-3 decision in July to leave the cash rate on hold,' they said. After this, they expect the RBA to "remain cautious" and noted the board was showing a "clear preference" to wait for quarterly CPI prints. Commonwealth Bank expects another cut in November, which would bring the cash rate to 3.35 per cent. ANZ also expects there will be two more cuts in August and November, while NAB expects three more cuts in August, November and February. On a $600,000 mortgage, Canstar calculated two further cuts could see minimum repayments drop by almost $180. If there are four cuts, minimum repayments could drop by up to $350, depending on the timing of the sesión para acceder a tu cartera de valores
Yahoo
24-07-2025
- Business
- Yahoo
Australia central bank not shocked by jobless rise, to cut rates gradually
SYDNEY (Reuters) -Australia's top central banker said on Thursday a measured and gradual approach to monetary policy easing was appropriate as the labour market had only eased slightly, shrugging off concerns about a recent jump in the unemployment rate. Speaking on inflation and employment, Reserve Bank of Australia Governor Michele Bullock said a rise in the jobless rate to 4.3% in June from 4.1% was not a "shock", adding that the labour market was slowing in line with forecasts. "Other measures – such as the vacancy rate – have been stable recently. More broadly, leading indicators are not pointing to further significant increases in the unemployment rate in the near term," Bullock said. Bullock said much of the rebalancing in the labour market over recent years has occurred in declines in job vacancies, hours worked and voluntary job switching, which is less disruptive than people losing jobs. "Because the labour market can adjust in different ways, we do not 'target' any one adjustment mechanism, such as a set number of job losses, as we seek to bring demand and supply back into balance." The central bank stunned markets earlier this month by leaving interest rates at 3.85% when a quarter-point cut had been widely expected. In a rare split decision, the RBA board decided to wait for more data on jobs and inflation before deciding whether to move in August. Since then, figures have shown unemployment unexpectedly spiked to a 3-1/2-year high of 4.3% in June, leading markets to almost fully price in an August easing. Bullock reiterated that there was a risk that second quarter inflation data might come in a bit stronger than expected and the central bank continued to assess that a measured and gradual approach to monetary policy easing was appropriate. Core inflation slowed to 2.9% in the first quarter, down from a peak of 6.8% and back within the RBA's target band of 2% to 3%. Data due next week is expected to show a further cooling to around 2.7%. "Our longstanding strategy has been to bring inflation back to target while preserving as many of the gains in the labour market as possible," Bullock said. "This approach meant that interest rates in Australia did not rise as high as they did in some other economies, and so we may not need to lower them as much on the way down." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News.com.au
22-07-2025
- Business
- News.com.au
End of financial year sales drive massive billion dollar spending boom
Savvy shoppers have spent more than $19.2bn online in the last three months in a sign of renewed consumer confidence and anticipated rate relief. The Australia Post eCommerce report shows a massive 7.9 million Australians are now shopping online, with every category tracked seeing a lift in spending. This was led by $4.2bn in online marketplaces, $3.9bn in food and liquor, and $2.7bn spent in on fashion. Australia Post puts the surge in online shopping down to a mix of bargain hunting Aussies targeting the end of financial year, easing cost of living pressures and households expecting further interest rate relief. One of those taking advantage of this sales period was Central Coast mortgage holder and mum Justine Ribgy who said June was always an expensive period for her household. 'We took advantage of those online retail offers more so around household appliances that needed replacing,' she said. 'My husband and I are also in the year being 40 so we had some big gifts there and our children's birthday's fall in June and July, so when we add all that up the (end of financial year sales) is a big savings.' The increase in customer spending came during a period when the Reserve Bank of Australia initially held the cash rate in April, before slashing 25 basis points in May. Households had also expected further relief in July, with a cut widely forecasted at the start of the new financial year. Instead, the central bank held the official cash rate at 3.85 per cent. Ms Ribgy said even though the RBA held the official cash rate in July, it was still a little win for households 'We have had to budget month to month with the cost of living over the last couple of years so a rate cut frees up our discretionary spending. We can be a little less frugal,' she told NewsWire. 'To be honest, even with the hold … it's still positive. It gives us that confidence to loosen the purse strings a little bit.' Despite the increasing overall spend, Australia Post research showed Australians are spending less per transaction with the basket size falling by 1.6 per cent over the previous year. Instead Aussies are buying more often and are turning to marketplaces and department stores to get the cheapest price product. Australian Post general manager customer success Chelsea O'Reilly said Australians were taking their time when it comes to online shopping in order to get the best deal possible. 'Consumers are becoming a whole lot more savvy and strategic in terms of their shopping and we've seen that with an increase in the amount of time they are spending on online marketplaces and department stores,' Ms O'Reilly said. 'They are going there so they can compare brands, pricing and maximise their savings.' Aussies proved their love for a quick bargain, spurring a significant 28 per cent spike in online department store spending during the quarter. Younger Aussies remain the most likely to buy online with Millennials spending $6.9bn online, followed by Gen X at $5.3bn and Gen Z who spent $3.4bn. Ms Reilly said with more Australians choosing to spend their money online, the postal service was investing heavily to keep up with customer demand. 'We are heavily investing in delivering choice and convenience for our customers,' she said.
Yahoo
20-07-2025
- Business
- Yahoo
High Growth Tech Stocks in Australia Featuring Life360 and Two Others
The Australian market is experiencing a bullish trend, with the ASX reaching new all-time highs, driven by positive sentiment from Wall Street and expectations of potential rate cuts by the Reserve Bank of Australia in response to rising unemployment. In this environment, high-growth tech stocks like Life360 are garnering attention for their potential to capitalize on favorable economic conditions and investor optimism. Top 10 High Growth Tech Companies In Australia Name Revenue Growth Earnings Growth Growth Rating Pro Medicus 20.17% 22.26% ★★★★★★ Gratifii 42.14% 113.99% ★★★★★★ Echo IQ 49.20% 51.35% ★★★★★★ WiseTech Global 20.46% 23.23% ★★★★★★ BlinkLab 51.57% 52.67% ★★★★★★ Wrkr 55.92% 116.30% ★★★★★★ Pointerra 50.42% 159.12% ★★★★★☆ Immutep 70.84% 42.55% ★★★★★☆ Adveritas 52.34% 88.83% ★★★★★★ SiteMinder 18.77% 55.55% ★★★★★☆ Click here to see the full list of 45 stocks from our ASX High Growth Tech and AI Stocks screener. We'll examine a selection from our screener results. Life360 Simply Wall St Growth Rating: ★★★★★☆ Overview: Life360, Inc. operates a technology platform that provides location services for people, pets, and things across various regions globally, with a market capitalization of A$8.63 billion. Operations: The company generates revenue primarily from its software and programming segment, amounting to $396.88 million. Its technology platform is utilized across North America, Europe, the Middle East, Africa, and other international markets. Despite recent volatility, including its drop from several Russell indexes, Life360 has shown resilience and strategic foresight in the high-growth tech sector. The company's revenue is expected to grow by 16.1% annually, outpacing the Australian market's 5.5%, while earnings are forecasted to surge by an impressive 40.6% per year. This growth trajectory is supported by innovative advertising solutions like Place Ads and Uplift by Life360, which leverage real-world behavior to deliver targeted ads, evidenced by their partnership with Uber that generated over 100,000 rides from airport travelers alone. With $308.9 million raised from a convertible notes offering aimed at funding acquisitions and strategic investments, Life360 is poised to expand its technological footprint and enhance shareholder value through smart capital allocation. Take a closer look at Life360's potential here in our health report. Gain insights into Life360's historical performance by reviewing our past performance report. Codan Simply Wall St Growth Rating: ★★★★☆☆ Overview: Codan Limited specializes in creating technology solutions for various clients, including United Nations organizations, security and military groups, government departments, individuals, and small-scale miners, with a market capitalization of A$3.67 billion. Operations: Codan Limited generates revenue primarily from its Communications and Metal Detection segments, with A$360.27 million and A$224.90 million respectively. The company focuses on providing technology solutions to a diverse range of clients, including governmental and military entities, as well as individuals in niche markets. With a robust 19.4% increase in earnings over the past year, Codan has outperformed the Electronic industry's growth of 8.9%, showcasing its competitive edge in a challenging market. The company's revenue is expected to rise by 10.8% annually, surpassing the broader Australian market's growth rate of 5.6%. This financial vitality is underpinned by Codan's commitment to innovation, as evidenced by its R&D expenses that strategically fuel advancements and efficiency in its operations. Looking ahead, while earnings are projected to grow at a steady rate of 15.76% per year, it's clear that Codan is not just keeping pace but setting the pace in its sector through strategic investments and a keen focus on sustainable growth. Click to explore a detailed breakdown of our findings in Codan's health report. Explore historical data to track Codan's performance over time in our Past section. Xero Simply Wall St Growth Rating: ★★★★☆☆ Overview: Xero Limited offers online business solutions tailored for small businesses and their advisors across Australia, New Zealand, the United Kingdom, North America, and other international markets, with a market capitalization of approximately A$29.80 billion. Operations: The company generates revenue primarily from providing online solutions for small businesses and their advisors, amounting to NZ$2.10 billion. Its operations span Australia, New Zealand, the United Kingdom, North America, and other international markets. Xero's recent performance and strategic initiatives position it as a dynamic entity in the tech landscape, particularly within the software industry where it has outpaced its peers with a 30.4% earnings growth over the past year. This growth is significantly higher than the industry average of 5.6%. The company's commitment to innovation is evident from its R&D spending, which has been crucial in maintaining this momentum; however, specific figures were not disclosed. Additionally, Xero recently enhanced its platform through partnerships and integrations, such as with BILL for streamlined bill payments in the U.S., reflecting a proactive approach to addressing client needs and improving cash flow management for small businesses. These moves not only enhance Xero's service offering but also solidify its standing in competitive markets by adapting to evolving business environments. Click here to discover the nuances of Xero with our detailed analytical health report. Understand Xero's track record by examining our Past report. Next Steps Embark on your investment journey to our 45 ASX High Growth Tech and AI Stocks selection here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Ready For A Different Approach? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:360 ASX:CDA and ASX:XRO. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
