Blog post by Empower Wealth

RBA May 2024 | The Inflation Psychology Story

Welcome to the third RBA Rate Release of 2024 with our hosts Ben Kingsley and Evan Lucas!

In a time when economic indicators sway like leaves in the wind, staying informed is vital. Here’s a sneak peek into what Ben & Evan will be discussing in today’s episode:

RBA’s Interest Rate Decision

Find out all about the Reserve Bank of Australia’s cash rate decision – as announced today at 2.30pm (AEDT).

Australia’s Inflation Challenges

Australia’s Q1 2024 inflation rate is lingering at 3.6%, stubbornly above the RBA’s comfort zone of 2-3%. Non-tradables like healthcare and rental housing continue to push inflation beyond the target, sparking debate on possible interest rate changes in response to upcoming federal budget outcomes.

Employment Landscape

Both the US and Australia’s employment situations exhibit mixed trends, with subdued consumer sentiment. However, Australia shows positive signs, with record-high participation rates and female employment at an all-time high.

Property Market Dynamics

Contrary to expectations, property prices in Australia continue to climb. This market resilience is driven by pockets of high demand and limited supply in several regions. Deep dive into current market dynamics and future property investment potential.

Inflation Psychology Story

This consumer mindset is a self-fulfilling prophecy. When consumers respond to high prices by buying now rather than delaying their purchases (because of the belief that prices will continue to go up in the future), they in turn artificially push up prices.

Let Ben & Evan demystify all the complex economic jargon and scenarios with clear, actionable advice coupled with expert analysis. Whether you’re a seasoned investor, home buyer, or just keen on economic trends, this episode is a must-listen!

Time Stamps

World Economic Update Segment

01:35 – GDP
05:11 – Inflation
09:52 – Interest Rates
11:02 – Employment Story
14:20 – Consumer Confidence and Sentiment
18:21 – Retail Sales
21:59 – Business Confidence Data
25:41 – US Key Takeaways

China

26:12 – China Key Takeaways

Eurozone

27:07 – Eurozone Key Takeaways

Australian Economic Update Segment

30:13 – Inflation
33:35 – Tradables versus Non-Tradables
36:25 – CPI (excluding Housing, Insurance & Financial Services)
38:06 – RBA’s Interest Rate Decision
40:42 – Employment Story
42:51 – Employment & Participation Rate
43:52 – Employment & Hours Worked
44:55 – Wages Price Index Growth
47:24 – Australia versus US Wage Growth
48:42 – Consumer Sentiment Index
53:47 – Consumer Spending
59:46 – Business Data

Australian Property Market Update

01:02:24 – Home Lending Activity
01:04:00 – Building Approvals Data
01:05:16 – CoreLogic Home Value Index
01:07:33 – CoreLogic Rental Growth

01:12:11 – Summary

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Tags: Australian economy, Australian property market, Cash Rate, Current Interest Rates, Gross Domestic Product (GDP), Home Loan, Inflation, Interest Rate, Interest Rate Announcement, Monetary Policy, mortgage broking, Property Market, property prices, RBA, rba cash rate, RBA Rate, Reserve Bank of Australia (RBA), Unemployment