Economy / 01 February 2024
Inflation falls as hope rises
Mortgage holders may breathe a sigh of relief next Tuesday as finance boffins predict the Reserve Bank will leave interest rates on hold following a significant fall in inflation reported by the Bureau of Stats yesterday. Prices rose by just 0.6% in the October-December quarter – the smallest rise in nearly 2 years. That’s helped to almost halve inflation from a peak of 7.8% a year ago to 4.1%. Before you break open the bubbly, analysts say the Reserve Bank will likely leave the current 4.35% interest rate where it is, with a cut later this year – maybe in August. And it’s expected that rents, house prices, insurance and electricity costs will all remain high. That’s a problem Reserve Bank Governor Michele Bullock referred to as “homegrown” – that is, local economic/market issues rather than external factors like blocked global supply chains.
Know someone who'd be interested in this story? Click to share...
The Squiz Today
Your shortcut to being informed, we've got your news needs covered.
Also Making News
Get the Squiz Today newsletter
Quick, agenda-free news that doesn't take itself too seriously. Get on it.