Fully half of Westpac’s loan book consists of interest-only loans, so why are the banks not more concerned about what could happen next?
- Scientia Professor of Economics, UNSW
While the key economic signs remain strong, new data suggests many Australians are entering into mortgages without having fully grasped the financial consequences.
The market welcomed statements from the US Federal Reserve and the RBA, but there isn’t much to be happy about.
Repeatedly boasting about the past won’t distract from the fact Australia’s economy is looking shaky.
The annual meeting of central bankers and economics professors in Wyoming is a chance for some to send a message on the path of monetary policy.
The Reserve Bank of Australia is stuck, according to the economic evidence, it has to raise rates but it also should cut.
The slew of numbers across various major economies this week continue to suggest a mixed picture.
This week’s strong growth in full-time employment shows a robust labour market. This only deepens the puzzle of why inflation is so low at the same time.
The amount of Australians in mortgage stress is the reason why wages growth and the labour market are such a problem - and a big reason for the RBA not to raise rates any time soon.
Why does the Chair of the Federal Reserve believe there won’t be another financial crisis in our lifetimes?
For a whole lot of workers in Australia, cutting a better pay deal is very hard.
If former US Treasury Secretary Larry Summers is right, then the unmistakable implication is that the RBA should probably cut rates – perhaps twice – later this year.
Treasurer Scott Morrison says Australia will “grow into growth”. Global economic conditions suggest otherwise.
House prices in Sydney and Melbourne are cooling, housing approvals are up, and everyone’s wondering if Australian banks have been lending too much.
The side effects of globalisation that have led to our current populist politics will not be successfully addressed by old-style industry policy.
Trump’s budget is bad in every way. But that doesn’t excuse us here of ridiculous assumptions.
The government’s best ideas for how to grow wages and incomes do not inspire confidence.
The housing affordability measures in this budget involve not much more than tinkering.
The budget was extraordinary in many ways. It is an abandonment of restraint on taxes by a liberal government. It is nakedly populist and it also acknowledges that government debt can be productive.
Some seem to think the RBA is bullish on growth, but reading between the lines it seems to be hedging.
In the lead-up to the federal budget, the government has made a number of significant and sometimes surprising policy announcements.
Wages are sluggish, underemployment seems stubbornly high, and there is a continued push to part-time rather than full-time employment.
Negative gearing plus inadequate supply plus low wage growth equals financial distress.
Yes, Brexit is really happening, and what comes next could determine whether we see another global financial crisis.
Australia’s central bank is still trying to walk a delicate tightrope.
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