High energy and grocery prices will keep the pressure on household budgets, sparking concerns from the Reserve Bank of a potential price-wage spiral.
. Lowe will face questions at Senate estimates and before the economics committee in Canberra next week.
“The path to achieving a soft landing remains narrow,” the RBA report said. “There are considerable uncertainties surrounding the outlook and so around the level of interest rates needed to achieve the board’s objectives.” Treasurer Jim Chalmers said cost-of-living pressures remained the government’s biggest focus, adding its plan to reduce energy prices was helping take the sting out of inflation in the economy.
“They promised before the election lower electricity prices. They promised before the election cheaper mortgages. None of this has been delivered. These numbers today confirm exactly that,” he said. Betashares chief economist David Bassanese said consumer spending remained fairly resilient over the last year despite the interest rate increases, which had allowed businesses to pass supply-related costs through to buyers.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Reserve Bank will keep raising interest rates, but don't expect more supersized jumpsThe Reserve Bank confirms that Australians can expect to see at least two more rate rises, but appears to favour a slow and steady approach over any more supersized hikes.
Read more »
Reading the RBA is getting harder for CBA, AMPSome of Australia’s most prominent bank economists have been lousy guides to where the Reserve Bank is going with interest rates.
Read more »
‘Lots of talk’ from US Federal Reserve officials about need for higher interest ratesCommSec’s Tom Piotrowski says there was a lot of talk overnight from US Federal Reserve officials about the “need for higher interest rates”. “So that wasn’t helping things, the S&P 500 down by about a per cent,” he told Sky News Australia. Presented by CommSec.
Read more »
The Reserve Bank wants unemployment to rise. It should be careful what it wishes for | Greg JerichoWe had all better hope the coming slowdown doesn’t happen before the full effect of rate rises is felt
Read more »
Business flags more price painMajor companies Boral, Suncorp and Amcor have warned of ongoing price rises amid little evidence that the Reserve Bank’s most aggressive tightening cycle in a generation has dampened demand.
Read more »