We discuss the latest from the RBA, via the new press conference and the Statement On Monetary Policy.
In short, the RBA Governor Michele Bullock says she is yet to be convinced inflation is on a sustainable path back to target and further interest rate rises could not be ruled out as the bank seeks to curb price rises stoking the nation’s cost-of-living crisis.
“Domestically, there are uncertainties regarding the lags in the effect of monetary policy and how firms’ pricing decisions and wages will respond to the slower growth in the economy at a time of excess demand, and while the labour market remains tight,” the board statement said.
This translates into higher rates for longer, which was not what the market wanted to hear!
Do not expect a rate cut soon. Plan accordingly.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
We discuss the latest from the RBA, via the new press conference and the Statement On Monetary Policy.
In short, the RBA Governor Michele Bullock says she is yet to be convinced inflation is on a sustainable path back to target and further interest rate rises could not be ruled out as the bank seeks to curb price rises stoking the nation’s cost-of-living crisis.
“Domestically, there are uncertainties regarding the lags in the effect of monetary policy and how firms’ pricing decisions and wages will respond to the slower growth in the economy at a time of excess demand, and while the labour market remains tight,” the board statement said.
This translates into higher rates for longer, which was not what the market wanted to hear!
Do not expect a rate cut soon. Plan accordingly.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
An important discussion with Robbie Barwick from the Australian Citizens Party, about democracy, the role of the Reserve Bank, and use of cash, as some are now calling for a significant change in the balance of power.
Who will win? Will un-elected technocrats dictate the future direction of the country, or will electable politicians step up and weald their accountable power?
This is a battle for the future.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
An important discussion with Robbie Barwick from the Australian Citizens Party, about democracy, the role of the Reserve Bank, and use of cash, as some are now calling for a significant change in the balance of power.
Who will win? Will un-elected technocrats dictate the future direction of the country, or will electable politicians step up and weald their accountable power?
This is a battle for the future.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The IMF just dropped a bombshell on Australia, saying that Interest rates should be hiked even higher and the Australian governments should slash spending to avoid stoking inflation. And proper tax reform was essential as an optimal tax package for growth and equity should rely more on the GST, take pressure off personal income tax paid by workers and crack down on capital gains tax breaks.
Now, let me say the IMF has a particular free-market neo-liberal western economic spin, but their comments are pretty damming and need to be taken seriously. Yet of course the Australian polies were quick to claim the IMF somehow endorsed their current policy settings – what – read the report Albo!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
The IMF just dropped a bombshell on Australia, saying that Interest rates should be hiked even higher and the Australian governments should slash spending to avoid stoking inflation. And proper tax reform was essential as an optimal tax package for growth and equity should rely more on the GST, take pressure off personal income tax paid by workers and crack down on capital gains tax breaks.
Now, let me say the IMF has a particular free-market neo-liberal western economic spin, but their comments are pretty damming and need to be taken seriously. Yet of course the Australian polies were quick to claim the IMF somehow endorsed their current policy settings – what – read the report Albo!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
This is an edited version of a live discussion with Robbie Barwick from the Citizens party.
The Senate will be delivering their report on Regional Banking, and it will be important to ensure access to cash is protected in an era of CBDC. And we need to ensure the Government does not outsource its fiscal and monetary authority to the Reserve Bank. Behind these issues is the question of power, and tyranny. Who is setting the agenda, and who is in control?
Original stream with chat replay here: https://youtube.com/live/7Or8ais2WxI
This is an edited version of a live discussion with Robbie Barwick from the Citizens party.
The Senate will be delivering their report on Regional Banking, and it will be important to ensure access to cash is protected in an era of CBDC. And we need to ensure the Government does not outsource its fiscal and monetary authority to the Reserve Bank. Behind these issues is the question of power, and tyranny. Who is setting the agenda, and who is in control?
Original stream with chat replay here: https://youtube.com/live/7Or8ais2WxI
In this show, we examine the main reasons why it is likely property prices will fall next year – this is a counterpoint to my earlier show which went through the Five reasons why they will rise – as trotted out by the property spruikers.
In summary, the risks from higher unemployment or a recession, the exit of property investors, higher delinquency and defaults, higher mortgage rates for longer, and dire housing affordability are all reasons why prices could fall in 2024.
And let’s be clear, the great Australian dream of owning a home is now totally out of reach, and many who were pulled into the market in recent years are in strife, to the point where rental costs have gone though the roof, and tent cities are becoming a thing. The very soul of Australia is decaying, unfortunately, that is unless you are fortunate enough to have family wealth or an existing property portfolio, which could now potentially fall in value.
Of course, the actual trajectory of home prices will vary across states, locations and types of property, and averages mask important differences. Which is why in our modelling we go granular – to a post code level, and also consider various scenarios based of the relative weightings of the positive drivers to prices we discussed yesterday, and the downward drivers we looked at today. So the answer is: it depends.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
In this show, we examine the main reasons why it is likely property prices will fall next year – this is a counterpoint to my earlier show which went through the Five reasons why they will rise – as trotted out by the property spruikers.
In summary, the risks from higher unemployment or a recession, the exit of property investors, higher delinquency and defaults, higher mortgage rates for longer, and dire housing affordability are all reasons why prices could fall in 2024.
And let’s be clear, the great Australian dream of owning a home is now totally out of reach, and many who were pulled into the market in recent years are in strife, to the point where rental costs have gone though the roof, and tent cities are becoming a thing. The very soul of Australia is decaying, unfortunately, that is unless you are fortunate enough to have family wealth or an existing property portfolio, which could now potentially fall in value.
Of course, the actual trajectory of home prices will vary across states, locations and types of property, and averages mask important differences. Which is why in our modelling we go granular – to a post code level, and also consider various scenarios based of the relative weightings of the positive drivers to prices we discussed yesterday, and the downward drivers we looked at today. So the answer is: it depends.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Today’s post is brought to you by Ribbon Property Consultants.
