The Westpac survey revealed that almost three-quarters of respondents anticipate further borrowing rate increases over the next year following five hikes already delivered this year. Despite this widespread household pessimism, economists and financial markets project that the central bank will begin easing policy by August, aided by a 20% plunge in global oil prices. Meanwhile, Prime Minister Anthony Albanese confirmed that upcoming budget revisions will feature spending cuts designed to restrain inflationary pressures.
Key points
Financial markets and Westpac economists predict the central bank will shift toward polic…: Financial markets and Westpac economists predict the central bank will shift toward policy easing by August without raising rates again.
A 20% drop in global oil prices is contributing to market expectations of imminent intere…: A 20% drop in global oil prices is contributing to market expectations of imminent interest rate reductions.
The federal government plans to implement public spending cuts in its mid-year budget upd…: The federal government plans to implement public spending cuts in its mid-year budget update to help curb national inflation.
Sources checked by our analysis pipeline: 1
Confidence among mortgaged households has crashed to its lowest level in more than three decades amid a growing sense of “helplessness” about the economy, even as a dramatic shift in financial markets suggests there is now a strong chance of a Reserve Bank rate cut by this time next year.
The latest Westpac survey showed its consumer sentiment index sinking again in November to reach a four-year low, amid deepening pessimism about the near-term prospects for the economy.
As Labor comes under increasing pressure over persistent cost-of-living pressures, the prime minister, Anthony Albanese, played down tensions with the treasurer, Jim Chalmers.
A day after the frontbencher Murray Watt called for colleagues to stop undermining Chalmers, Albanese said: “The treasurer is doing a great job”.
The PM said he was working closely with Chalmers in the lead-up to next month’s mid-year budget update, which will include cuts to government spending as pressure mounts to contain inflation.
“This is a treasurer who’s produced a couple of budget surpluses, lower deficits, [who is] producing economic reform,” Albanese said.
Market activity shows Ferrexpo equity facing downward pressure during today's trading session. Current reporting indicates that trading movement remains negative while additional details concerning the slide have not yet emerged. Observers await further updates to understand the specific drivers behind this downward performance.
Regional market participants drove strong momentum across domestic equities, pushing the Jakarta exchange into firmly positive territory by the closing bell. This solid upward push reflects sustained buying interest throughout the daily trading session. The performance demonstrates continued strength for local shares as market activities wrapped up for the day.