RBA Nov 2023 | Inflation – Material Enough?

Welcome to the November Economic and RBA update. This month, our focus revolves around key topics:

• RBA’s November Board Meeting: All eyes are on the Reserve Bank of Australia (RBA) and whether the September inflation data was substantial enough to trigger the 13th cash rate increase in this upward cycle.
• Inflation Concerns: We’ll delve into the topic of inflation, which warrants some passionate discussion.
• Property Market Update: Lastly, we will share the latest insights into the property market.

Before diving into this month’s economic data, it’s crucial to acknowledge the heightened geo-political tensions and the outbreak of war in the Middle East. While this is a tragic humanitarian event, it also has significant negative global economic implications.

Uncertainty and instability from such events affect global economic confidence, sentiment, investment, oil supply, prices, and trade, leading to economic slowdowns.

We hope for swift resolutions in the Middle East and Ukraine to mitigate these impacts. However, the current environment is marked by geopolitical uncertainty, inflation concerns, and rising debt costs, which have made both equity and bond markets volatile. Stock markets have already witnessed significant declines, with further risks stemming from geopolitical tensions and inflation-induced slowdowns in developed economies.

This somber note underscores the economic consequences intertwined with humanitarian crises.

Lastly, if you’re feeling the pinch of rate rises and are concerned about your cashflow in the coming months, we’ve got a couple of resources for you:

A) MoneySTRETCH Tool on Moorr:

This free tool enables you to input different scenarios and promptly observe their impact on your cashflow and savings. For instance, you can determine how a 2% increase in your loan will influence your cashflow and calculate the duration (in months) your current spending level can be sustained.

Learn more about MoneySTRETCH here >

B) Free Finance Review with our National Award-Winning team

If loan repayment is a big chunk of your expenses and you haven’t reviewed it recently, you might want to consider speaking to your broker/banker. If you’re looking for one, our team of qualified and experienced Mortgage Brokers recently won the Australian Brokerage of the Year from the Australian Mortgage Awards and we would love to help! The initial consultation is completely free and comes with no obligation, so why not give it a try?

Learn more about our Mortgage Broking services here >

Now, let’s delve into this month’s data. Here are all the time stamps!

0:48 – The impact of multiple geo-political uncertainties on Global Economic Outlook

World Economic Update Segment:

3:17 – United States: GDP Results
4:38 – United States: Annual Inflation Data
6:24 – United States: Interest Rates
7:09 – United States: Unemployment Story
8:02 – United States: Consumer Data Story
10:45 – United States: Consumer Confidence Story
12:12 – United States: Services PMI Story
13:00 – United States: Summary
13:39 – China: GDP Results
14:43 – China: Inflation
16:29 – China: Unemployment Data Story
17:11 – China: Retail Sales
18:00 – China: Business Confidence Story
18:34 – China: Manufacturing PMI
18:34 – China: Services PMI
18:34 – China: Summary
21:05 – Europe: Inflation Data
25:13 – Europe: Unemployment Data Story
25:48 – Europe: Consumer Confidence/Sentiment Trend
26:20 – Europe: Retail Sales
26:29 – Europe: Manufacturing PMI
27:39 – Europe: Services PMI
29:47 – Europe Economic Update Summary

Australian Economy Segment

29:59 – RBA November 2023 Cash Rate!
32:32 – Australia’s Inflation Story
37:27 – Inflation: Higher Electricity Costs
37:27 – Inflation: Higher Housing Costs
37:27 – Inflation: Higher Food Costs
43:04 – Inflation: Higher Wages
49:00 – Labor Force Data
52:16 – Consumer Data
56:09 – Business Data Story

Property Market Update

58:55 – The Australian Property Market Data
59:08 – Housing Credit Data
1:00:11 – CoreLogic Price Movement
1:03:49 – Big challenges for capital cities & regional property markets