Daily BulletinHoliday Centre

Money

  • Written by News Company

The Reserve Bank of Australia (RBA) held its monetary policy meeting at the beginning of February and decided to keep rates unchanged, but that could soon take another direction, given the low prospects for economic activity in 2019.

Philip Lowe, governor of RBA, acknowledge that a rate cut might be needed in case economic conditions deteriorate further:

“In the event of a sustained increased in the unemployment rate and a lack of further progress towards the inflation objective, lower interest rates might be appropriate at some point. We have the flexibility to do this if needed.”

Domestic and foreign influences

The Australian housing sector had longed been assumed to be in a bubble. Reports suggest one of the reasons why the RBA decided to keep rates unchanged for the 30th consecutive month in a row, is due to house prices declines in cities like Sydney or Melbourne.


Australian economy weakening

Another reason why the economy could decelerate further is linked to one of the most important Australia’s trading partners. The Chinese economy had been slowing to the lowest pace since the ’90s, which lowers the prospects for Australian exports.

A weakening global economy will have significant negative effects, affecting the already fragile recovery that followed the 2008 financial crisis. Financial markets across the globe and traders working with brokers like FXVC, Pepperstone, and City Index will find themselves in a tough position to generate returns while trading assets like stocks.

Wage growth and unemployment

As it was acknowledged by the RBA government, a big impact on the interest rate decision will be held by the unemployment rate and wage growth:

“If Australians are finding jobs and their wages are rising more quickly, it is reasonable to expect that inflation will rise and that it will be appropriate to lift the cash rate at some point,” Dr Lowe said. On the other hand, given the uncertainties, it is possible that the economy is softer than we expect and that income and consumption growth disappoint.”

A recent poll conducted by finder.com.au, suggest that out of 28 ecommerce dropshipping course experts and economist, just 40% believe that the RBA will move rates higher. Conditions had changed dramatically over the past two years when over 80% of the experts questioned expected a rate hike from the central bank.The bottom line is that risks for the economy slowing are in line with the global picture.


Image source

The Conversation

Politics

Keeping Australians safe at airports

The Morrison Government is increasing counter-terrorism measures across nine airports by boosting the Australian Federal Police’s capability to disrupt and deter high-risk-incidents.   Prime Min...

Scott Morrison - avatar Scott Morrison

Scott Morrison on Medivac

PRIME MINISTER: The Australian public are in no doubt about our Government’s commitment to strong borders. Our Government has always been consistent. The Liberal and National parties have always b...

Scott Morrison - avatar Scott Morrison

Government will protect religious freedoms by getting the law right

After further considering the hundreds of submissions that have been made to the Exposure Draft of the Religious Discrimination Act (RDA), the Government decided earlier this week to issue a revis...

Scott Morrison - avatar Scott Morrison

Business News

Media and Capital Partners spins out new agency arm Mojo Media

Media and Capital Partners, one of Australia’s leading investor relations and media relations consultancies, has spun out a new, fully integrated consumer, finance and technology PR agency called ...

Media Release - avatar Media Release

How to make your small business survive and thrive in 2020

There’s a global downturn and Australian bricks and mortar retail is in a slump. 2020 is going to be a rough year. Everyone knows that, but a lot don’t know what to do about it. Australia still h...

Dorry Kordahi - avatar Dorry Kordahi

Aussie welding tech company expands to SE Asia

K-TIG SIGNS 8-YEAR WaaS LICENCE AGREEMENT IN SE ASIA Highlights K-TIG signs 8-year Welding-as-a-Service (WaaS) Licence Agreement. Steel-Ti Precision Welding (Singapore) is part ...

Media Release - avatar Media Release

Travel

To sell travel packages partner with Holiday Centre - Advertisement

If you are a travel or accommodation provider allow the travel professionals at HolidayCentre.com market your products.. With a business name like Holiday Centre, you can be sure that they will delive...

Holiday Centre - avatar Holiday Centre

6 travel tips you need to know before visiting Melbourne

People have always held Melbourne in high regard with it's numerous coffee stops, it's glorious art galleries, the food scene that can floor any curious palate. There's a unique multiculturalism i...

News Company - avatar News Company

Hertz DriveU

Hertz and Air France launch Hertz DriveU, a new high-quality, hassle-free airport transfer service Hertz DriveU “When you don’t want to drive!” The service is available at more than 300 airports...

Media Release - avatar Media Release

ShowPo