Home price falls accelerated in August – three reasons why this property downturn will likely be different Key points Australian home prices fell another 1.6% in August and are now down by 3.5% from their high. Rising mortgage rates are the main driver and there is likely more to go. We continue to expect a 15-20% top to bottom fall in home prices out to the second half of next year, followed by a …
The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August Key Points The RBA will end quantitative easing this month. While it now sees unemployment falling below 4% and higher inflation it is prepared to be “patient” for now. We expect rate hikes to commence in August. Ultimately, we see the cash rate rising to around 1.5 to 2% in the years ahead but it’s …
September job figures make the case for further monetary easing After a stronger-than-expected performance in August, September employment numbers exceeded expectations for the second month in a row, falling by 29,500 jobs as opposed to consensus estimates of a 40,000 drop. Nonetheless, this month’s decline in employment figures after three months of growth suggests we’re now on track to see slow growth in employment and a rising participation rate. We expect the headline unemployment rate …
