See the world through the eyes of an economist.
RBA finally cuts
In what was probably the most anticipated rate-cut in Australian history, the RBA finally cut rates this week, by your stock-standard 25 basis points.
However, the accompanying statement and the Governor’s press conference were more bullish that people expected, with the Governor throwing cold water over hopes for three rate cuts this year. As a result, markets have pared back their bets for rate cuts at the coming meetings:
The key factor here is the jobs market, which continues to remain stronger than expected. The RBA lowered their forecast for the unemployment rate, down from 4.5% at year end, to 4.1%.
HECS Debt to go from mortgage calcs
The government announced that they want banks to exclude HECS debts from mortgage serviceability calculations. If you’re on a pre-tax income of $125,000 it lifts your borrowing power by as much as $95,000. So, it’s a move that’s price-positive for housing.
Exports lifting again
Australia’s goods exports lifted again in January, which will be good news for the government’s budget outlook.
The Deepfake boom
The number of deepfake videos has been doubling every year since 2018. That is, it’s going exponential. Soon, you won’t be able to trust a single thing you see online.
And that’s how the world looked through the eyes of an economist this week.
DB.