Monthly Economic Videos
Each month we will bring you a video on an update of what is happening in the economic world.
After 28 years Australia’s record economic expansion ended due to the COVID shutdowns, below is a video to assist you to stay up to date with the latest indicators.
Our economy contracted by 0.3% in the March quarter, with an estimated 8% contraction in the June quarter, confirmation that we are officially in recession.
Yet Australia is weathering the COVID storm better than most nations, with signs of building business and consumer confidence.
In the year to June, Australian shares trimmed their losses to 10.8% after a partial rebound in the last quarter. US shares rose 4.6% over the same period.
The current cash target rate of 0.25% has been left unchanged and is expected to remain at its current level for the foreseeable future.
As May unfolded, hopes grew of economic re-opening, below is a video to assist you to stay up to date with the latest indicators.
Reserve Bank Governor Philip Lowe told a Senate Committee on COVID-19 the economic downturn was less severe than feared due to Australia’s better than expected health outcomes and government stimulus and support.
Australian shares bounced back by around 5% in May, while the US market rose 3%.
The cash rate for June has been left unchanged at 0.25%.
Data released in April provided an early insight into the impact of the coronavirus on the Australian economy, below is a video to assist you to stay up to date with the latest indicators.
After a month of social and economic hibernation, there are signs that some of the restrictions will soon be loosened somewhat. This is welcome news for households, businesses and our economy.
Global markets continued to react to the ongoing situation with volatility.
The cash rate for May has been left unchanged. At 0.25% the cash rate is currently considered to be at its effective lower bound.
Global markets fell during March, reacting to the ongoing situation and government stimulus measures with volatility.
The cash rate for April has been left unchanged, however the RBA cut the cash rate twice in March – 4/3/2020 decreased to 0.5% – 20/3/2020 decreased to 0.25%
The RBA also began buying government bonds to bring yields down in line with the cash rate.
The RBA additionally offered a term facility to banks so they can supply credit to small and medium businesses.
Data released in February gave an early indication of how the Australian economy has been impacted by the bushfires and coronavirus.
The Reserve Bank of Australia lowered its near-term growth forecast for the year to June 2020 from 2.5% to 2.0%.
Australian, US and European share markets all fell by more than 8% in February. Commodity prices also fell, although gold was up more than 5% due to its safe haven status.
The RBA cut the cash rate to a new record low of 0.50%.
The decision was made to soften the impact of the coronavirus on the back of weak economic data.
Global growth forecasts were downgraded to 3.3% this year and 3.4% in 2021 on the basis of geopolitical and trade tensions.
Locally, the impact of summer bushfires and ongoing drought is being felt. The cash rate was held at the current record low of 0.75% for the time being.
We also look at the other economic indicators that paint a picture of the health of the economy, including consumer sentiment, movements in the Australian dollar, unemployment and wages as well as the state of the property market across all of the capital cities.
Economic activity remains patchy, with the RBA forecasting that Australia’s economy will stay flatter for longer.
The cash rate was held at the current record low of 0.75%.
The economy is benefiting from already low interest rates, recent tax cuts, ongoing infrastructure spending and the upswing in housing prices nationally.
The cash rate was held at the current record low of 0.75%.
Current low interest rates appear to be supporting a gentle turn around in economic growth. This is evidenced by a rise in the September quarter inflation figure and a slight easing in the unemployment rate.
Your financial well-being and plans for the future can be impacted by various economic events.
Your financial well-being and plans for the future can be impacted by various economic events.