Deutsche Bank’s Philip O’Donaghoe said with inflation stronger than expected, the Reserve Bank needed to go harder, predicting a peak cash rate of 4.1 per cent.
Deutsche Bank economists expect the Reserve Bank of Australia’s official cash rate to hit 4.1 per cent by August as it tries to curb inflation, which will make things difficult as Treasurer Jim Chalmers prepares his May budget.
With interest rates smashing mortgage holders, Dr Chalmers will come under pressure to add more cost-of-living relief to the budget on May 9 But with inflation still expected to be above 6 per cent, albeit on a downward trajectory, Dr Chalmers will be limited in what he can do beyond promised energy bill relief without working against the RBA’s tightening efforts.P on Monday affirmed its AAA credit rating for Australia.
But that won’t stop calls for the Albanese government to do more to fix an underlying structure deficit caused by defence spending, blow outs in the National Disability Insurance Scheme, and high borrowing costs.In its pre-budget submission published on Monday, the nation’s largest employer group, the Australian Chamber of Commerce and Industry, called for Dr Chalmers to reveal a clear plan for structural budget repair in May.
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.
M Degas Steps Out: An Essay by Philip Hoy review – an artistic encounter across a centuryA nine-second 1915 film of the painter Edgar Degas inspires a beguiling meditation on life in Paris during the first world war
Read more »
ASX on a bumpy ride as central banks meet to slow rate risesThe world’s most-watched central banks are expected to slow down their pace of interest rate increases as the outlook for global growth slightly brightens.
Read more »
Chalmers taps banks and super to fix social disadvantageThe Treasurer is working on plans to attract banks and superannuation funds to set up a social impact investing fund to tackle “entrenched disadvantage” in the May federal budget.
Read more »
Big banks split on buy now, pay later regulation planSubmissions to Treasury on proposed regulation for buy now, pay later providers show diverging ideas about the best way forward.
Read more »
Time’s up? Tyrekickers test RACQ’s appetite for bankingSuncorp Bank’s not the only Queensland lender in swoopers’ sights, with regional banks and bigwigs casting their eyes over RACQ’s Queensland’s troubled banking arm.
Read more »
Second shooting in Jerusalem as Israel launches security crackdown in West BankA shooting wounded two people in Jerusalem as Israel's military said it was boosting its forces in the occupied West Bank after a Palestinian gunman shot dead seven people near a synagogue.
Read more »