According to chief political analyst at The Australia Institute Amy Remeikis, the Reserve Bank of Australia relies on engineering unemployment to suppress inflation, despite price pressures stemming from supply-side drivers like energy costs and data centre investment rather than excess consumer spending. Speaking ahead of Australian Bureau of Statistics labor force figures, Remeikis highlighted a … Read more
Australia’s housing market has moved into a downturn for the first time in more than three years, with national capital city house prices falling 1.4 per cent and unit prices dropping 1.2 per cent in the June quarter. According to data from the online real estate company Domain, this shift follows three years of uninterrupted … Read more
Australia’s unemployment rate fell to 4.4 per cent in May, down from 4.5 per cent in April, according to seasonally adjusted data. While 40,300 additional people secured employment, the trend-based figures—which account for seasonal volatility—show a slight rise to 4.4 per cent, marking the highest trend-based unemployment level since the end of the 2022 lockdown … Read more
The Strait of Hormuz is set to reopen for international shipping this week following a ceasefire agreement between the United States and Iran, according to statements from US President Donald Trump at the G7 summit. The closure of this critical maritime chokepoint, which handles nearly 20% of global oil shipments, caused the most significant energy … Read more
The Psychology of Pricing: Why Your Expectations Drive Inflation Inflation isn’t just about the cost of raw materials or supply chain glitches; We see deeply psychological. Economists call this the “inflation expectations” loop. When consumers and businesses believe prices will be higher tomorrow, they change their behavior today. Imagine you are planning a home renovation. … Read more
RBA on High Alert: Interest Rate Hike Looms as Middle East Conflict Fuels Inflation Fears Australian homeowners bracing for potential mortgage stress may face further pain, with a growing consensus among economists predicting the Reserve Bank of Australia (RBA) will raise interest rates next week. The shift in expectations comes as the ongoing conflict in … Read more
Australia’s Tight Labour Market Keeps Rate Hike Pressure on RBA Australia’s unemployment rate held steady at 4.1 per cent in January, defying expectations of a slight increase and adding to the pressure on the Reserve Bank of Australia (RBA) to consider further interest rate rises. The latest figures, released on Thursday, February 19, 2026, indicate … Read more
RBA Rate Hike: Is Government Spending Fueling Inflation? Australia’s Reserve Bank (RBA) recently increased the cash rate to 3.85%, the first hike since 2023, sparking debate about the drivers of persistent inflation. RBA Governor Michele Bullock faced grilling from a parliamentary committee, with opposition MPs focusing on the role of government spending. The central bank’s … Read more
Australian homeowners bracing for relief on their mortgage repayments are likely to be disappointed, with the Reserve Bank of Australia (RBA) signaling that interest rate cuts are not on the immediate horizon. Recent comments from RBA Deputy Governor Andrew Hauser reinforce the message delivered by Governor Michele Bullock: the focus remains firmly on controlling inflation, … Read more
Inflation Slows, But Rate Hike Hangs in the Balance: What’s Next for Australian Borrowers? Australian homeowners and businesses are breathing a collective sigh of relief as November’s inflation figures showed a welcome cooling. However, the Reserve Bank of Australia (RBA) remains in a tricky position, and the question of whether interest rates will rise further … Read more