Australian Economy

RBA begins to import inflation

The Reserve Bank of Australia’s surprise decision earlier this month to only increase the official cash rate (OCR) by 25 basis points is, as expected, starting to manifest itself with a weakening Aussie dollar (AUD). Most economists had expected a 50 basis point rise. At 2.60 percent, the OCR sits

Australian Economy

RBA increases rates 25 bps to 2.60 percent

The Reserve Bank of Australia (RBA) has today increased the official cash rate by 25 basis points to 2.60 percent. Most of the market was expecting a 50 basis point rise. This is the sixth consecutive rate hike this year as the RBA continues to normalise interest rates and start

Australian Economy

Australia’s CPI Indicator hits 6.8 percent in August

The new Australian Bureau of Statistics (ABS) Monthly CPI Indicator has shown headline Inflation in Australia had hit 7.0 percent in the year to July, and 6.8 percent in the year to August. Prices for food and non-alcoholic beverages have risen at 9.3 percent per year, helped by fruit and

Australian Economy

Building approvals continue to plunge

New figures released from the Australian Bureau of Statistics (ABS) show building approvals continue to decline due to a significant slow down in the apartment sector. The largest decline in approvals have been in sectors other than houses – i.e. townhouses, units and apartments. Australia turned to an apartment building

Australian Economy

Australia’s Property Market “Safe as Houses”: Treasurer.

Earlier this week, Australia’s Federal Treasurer Scott Morrison reassured foreign lenders that “Australian housing values, while high, are still ‘real’.” “Safe as houses still broadly means something in Australia,” He went on to say, “The rise in housing values has been driven principally by genuine economic forces of supply and

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Australian Economy

Australian Banks placed on Credit Watch Negative

Credit rating agency Fitch has placed Australia’s banks on a negative credit watch, citing an increase in macro-economic risks stemming from the property asset bubble. Fitch indicated a key risk for the banking system was the banks’ exposure to the overheated property market. Of special concerned is strong increases in

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Australian Economy

Up, up and away. Why are mortgage rates on the rise?

Australia’s property investors and debt slaves were in shock on Friday, when Westpac joined the ranks of smaller banks, significantly hiking mortgage rates out of cycle, on its fixed term loans. Westpac’s five year fixed investment loan will jump 60 basis points or 2.4 times the standard Reserve Bank increase

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Australian Economy

Systemic mortgage fraud under investigation

Australia’s unprecedented housing bubble has forced a significant number of mortgage applicants to falsify loan applications, simply to get a foothold in the ever challenging market. A recent UBS survey found mortgage fraud in Australia was rife, with 28 per cent of applicants admitting to falsifying loan documents. Many had

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Australian Economy

More homes left empty as rental yields decline

Negative gearing was intended to create more affordable housing, but as house prices surge, causing rental yields to tumble, more evidence is mounting to the contrary. Research by UNSW’s City Futures Research Centre has found a higher concentration of vacant homes in the inner cities. When it investigated further, it

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Australian Economy

Squatters make WA home

Western Australia’s highest residential vacancy rate in decades has turned the state into a hot spot heaven for squatters. Squatters are finding home in some of the tens of thousand vacant properties sitting idle in WA. Some are changing the locks and threatening landlords. Others are conducting their own renovations

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Australian Economy

Australia’s big 4 banks “almost too big to get sick”

Australia’s banking regulator has expressed “perpetual concern” about the dominance of Australia’s big four banks in the lending market. Charles Littrell, Australian Prudential Regulation Authority (APRA) supervision general manager told a Centre for International Finance and Regulation showcase event on Thursday, “In 1990, the four major banks had 40 per