Christmas Comes Early

Christmas Comes Early

Amidst all the bad news of 2022 comes some good news at last. It is just possible that the rate of inflation in Australia has peaked (in October) earlier than predicted by economists (The Australian 1 Dec 2022: Robert Gottliebsen). (By the way – what do you call 100...
Whatever Happened to Goldilocks?

Whatever Happened to Goldilocks?

It wasn’t long ago there was talk of the Goldilocks Economy – not too hot, not too cold. It was juuuuust right. Unemployment around 4%. Inflation around 2%. Wages growth around 2%. But as in the story – the Three Bears came home… Just who are these Three Bears at the...
The Reasons Behind and Lessons from the Past.

The Reasons Behind and Lessons from the Past.

What caused the Reserve Bank to move away from its previously stated plans? Namely… they were not going to move until: Inflation was comfortably in the 2%-3% range.Wages growth was above 3%. The reasons that threw the Reserve Bank off course were simple: Russia...

Westpac Weekly 2nd May – Rate rise predictions

At the April Reserve Bank meeting the governor said he would: Wait for the release of inflation figures – which came out last week (April 27th ) at 3.4%.Wait for the release of employment / wage figures on May 15th. I listen carefully to Bill Evans – Westpac...
Rates and House Price – What Lies Ahead

Rates and House Price – What Lies Ahead

House price rose by 25% in 2021 driven exclusively by Low interest rates,The need for more space to accommodate working from home. There was a segment of the property market that missed this – inner city units – which rose by only 8%. Unit blocks close to the city...