Wednesday, July 7, 2021

Reserve Bank increasingly concerned about surging house prices, watching for signs of lax lending standards

The Reserve Bank governor has signalled that financial regulators are becoming increasingly concerned about surging real estate prices in parts of Australia.

As the central bank begins to wind back its massive emergency stimulus rolled out during the COVID crisis, Philip Lowe says the RBA is "closely monitoring" the housing market while stopping short of announcing any intervention.

I spoke with Tom Oriti on ABC NewsRadio

Tuesday, July 6, 2021

Reserve Bank holds interest rates near zero, sticks to 2024 forecast for first rate hike

 Reserve Bank governor Philip Lowe has laid the groundwork for winding back some of its massive emergency stimulus that's been pumped into the economy since the beginning of the COVID crisis. 

But in what will be good news for highly-leveraged borrowers who've dived into the surging real estate market, the RBA says any increase in the official cash rate probably won't be until 2024.

ABC's Peter Ryan says Dr Lowe was also optimistic the economy will quickly bounce back from recent lockdowns including the current one in Sydney.




Reserve Bank begins gentle windback of emergency stimulus, keeping rates on hold near zero

The Reserve Bank has laid the groundwork for winding back some of its massive emergency stimulus that's been pumped into the economy since the beginning of the COVID crisis.

But in what will be good news for highly-leveraged borrowers who've dived into the surging real estate market, the RBA says any increase in the official cash rate probably won't be until 2024.

There was also optimism that the economy will quickly bounce back from recent lockdowns including the current one in Sydney.

I spoke with Linda Mottram on the ABC's PM program.

Reserve Bank on track to trim emergency support as economy rebounds

It's a big day for Australia's Reserve Bank which is likely to flag how and when it will wind-back massive emergency stimulus rolled out at the height of the pandemic.

While the RBA is expected to leave the official cash rate on hold, economists will be watching for any changed language that might signal whether rates will start rising ahead of schedule.

I previewed the central bank's July board meeting when I spoke with Thomas Oriti on ABC NewsRadio. 

Monday, July 5, 2021

Australian Super balanced fund rebounds 20 percent as stocks surge during crisis

The industry-owned fund Australian Super has delivered a 20 percent return to members who held their nerve during the pandemic induced crisis. 

The fund's chief investment officer Mark Delaney says the best sharemarket returns since the 1980s fuelled the result despite earlier fears the crisis would erode retirement nest eggs.

Here's my analysis from The World Today


Small business nervous amid uncertainty about vaccine rollout and more lockdowns

With greater Sydney still in lockdown for the rest of the week, small businesses are becoming increasingly concerned that the stay-at-home restrictions could send many to the brink of collapse.

While state and territory leaders have committed to a four phase plan out of the suppression strategy, business operators are worried that the slow rollout of vaccines could damage the current economic rebound that's underway in parts of Australia.

Here's my analysis on RN Breakfast where I speak with Debbie Brown, founder of the pop-up retailer Eat, Shop, Love.