The end of July round of interest rate decisions by major central banks has led to a relatively quiet week for markets and commentators. As such, economics and market news this week was focused on China, where concerns about the loss of momentum are building.
In Australian economic news, the Reserve Bank of Australia left official interest rates on hold yesterday. In the media release, it highlighted that the full impact of the cumulative 4 percentage points of increases since last May is yet to be felt.
In Australia, it is being suggested that the tipping point in consumer spending has been reached. Economists are predicting that consumption activity, which has remained resilient in the face of soaring cost of living soaring and associated year of interest rate rises, is about to turn down.
In Australian economics news, the unemployment rate fell to 3.6 per cent (from 3.7 per cent) in May. This was said to be off the back of an higher-than-expected increase in employment, of 76,000, a rebound in growth after a small fall around Easter (in April).
New data show that the Australian economy slowed more than expected in the first quarter of 2023, to 0.2 per cent. This was attributed to higher interest rates weighing on household spending, and construction activity.
In Australia, the Reserve Bank of Australia decided to increase the official interest rate for a twelfth time, to 4.1 per cent. The Bank stated that inflation pressures in the economy have increased.
Tech investor and executive chairman of Thorney Investment Group Alex Waislitz talked to Stockhead.com about why he owns 19 per cent of Stoic investee Jayride, and what it is that makes him think this company has the potential to become another successful Australian-born player in the global travel space, alongside Webjet.
In Australian economic news this week, the Reserve Bank of Australia’s Governor appeared before a parliamentary committee, and was reported as being ‘pessimistic’ and ‘leaving no doubt that he is not done raising interest rates’.
