New monthly inflation data show that prices increased 6.9 per cent in the year to end-October 2022. This outturn was well below expectations, and reflected an fall in food and grocery prices.
The Reserve Bank of New Zealand accelerated its monetary policy tightening cycle this week, raising its official interest rate by 0.75 percentage points, the largest increase in its history.
New data on wages growth in Australia show that average private sector pay rises hit 4.3 per cent in the September quarter. Overall, wage growth picked up 1 per cent over the quarter, to 3.1 per cent through the year (seasonally adjusted).
New inflation data for the United States undershot expectations, causing a rally in share markets, the S&P index jumping more than 5 per cent. However, on Monday, one of the Federal Reserve Governors warned in a speech in Sydney
Markets were unsettled ahead of the US midterm elections. Midterm elections generally hand control of at least one of the houses to the non-government party. However, there are concerns that the Republican party will win significant power and disrupt the government’s agenda.
The Reserve Bank of Australia yesterday decided to raise the official interest rate by 0.25 percentage points to 2.85 per cent. This was in-line with market expectations.
In Australian economic news this week, the new Federal Government’s first budget was revealed. Commentators suggested that the Treasurer has ‘laid the groundwork for an agenda of tax increases and spending cuts’ with a federal budget that forecasts debt and deficits over the next decade to be worse than thought six months ago.
Dismantling the Significant Investor Visa (SIV) will remove billions of dollars for Australian startups at a time when they most need funding. Applicants for the SIV are required to put a proportion of their funds ‘at risk’ and of that a minimum of $1 million in venture capital.
The International Monetary Fund (IMF) downgraded its forecasts for economic growth in Australia in 2023 to 1.9 per cent (from 2.2 per cent). The IMF's expectations, while softer than previously, are still above the growth rate predicted by the Reserve Bank of Australia (1.8 per cent) in its August update.
