RBA Cash Rate April 2021: The Return of The Roaring 20’s!

Hi, Ben Kingsley here with the economic and RBA update for April, 2021. There’s plenty of data and economic news in this month’s announcement, but the three big takeaways I’ll be covering are:

• Will we see a repeat of The Roaring 20’s!?!
• RBA stays on message
• Property is HOT!

The RBA kept the cash rate at 1% and are in no rush to increase it anytime soon, until inflation is sustainably within the 2% – 3% per annum range. For this to occur, it’s likely that wages growth will need to be sustainably above 3%.

Here’s a snapshot of what’s covered in this video…

The World Economy

Growth is being fueled by three key factors:

1. Global Monetary Policy Easing

2. Government Fiscal Stimulus helping in terms of reducing unemployment and business closures, etc

3. Vaccine Rollout to have material impact by end of 2021, allowing economies to re-open

COVID-19 Update

According to The Financial Times there are currently seven different vaccines that are being administered in over 179 different locations and over 652 million doses administered.

Global News – Get The Recent Update On…

United States

• Joe Biden’s pandemic-relief bill
• GDP update
• Jobs Data
• Further stimulus coming
• New goal with vaccine rollout

China

• Economic news and latest data
• Current Purchasing Managers’ Index (PMI)
• Retail Sales + Property Investment Rise
• Crackdown on internet platform companies

Europe

• CPI Inflation
• European Central Bank (ECB) policy rates
• Government debt purchases to ramp up
• Inflation forecast
• GDP forecast

New Zealand

• New measures to cool booming housing market
• Tax Deduction and Capital Gains Tax changes for investors
• Recent Macro-Prudential Rules

Australia – The Economic Story

Today the RBA stayed “on Message” signaling to the market that Cash Rate will remain on hold until 2024 at the earliest.

• RBA’s view on bonds
• Lending standards – any changes?
• GDP numbers & What this means for the Australian Economy
• The Unemployment Story
• Australia without JobKeeper…
• Consumer Confidence & Sentiment
• Retail Spending
• Business Investment
• Business Confidence
• Private Credit

Australia – The Property Story

• Housing Lending
• Owner Occupiers vs Property Investors
• First Home Buyers in the market
• Building Approvals
• Private sector housing approvals
• Property Prices — HOT and Only Getting Hotter?
• CoreLogic’s National Home Value Index
• Capital Cities vs Regional Areas
• Victoria’s Recovery
• Where was the Fastest Pace of Dwelling Prices?
• Double-digit annual price gains!?!
• Growth Numbers across each state and territory
• Story of The Roaring 20s – Are we here again!?!
• Household Wealth numbers

Always remember, Knowledge is empowering, but only if you act on it.