{"id":142814,"date":"2023-10-17T21:14:21","date_gmt":"2023-10-17T21:14:21","guid":{"rendered":"https:\/\/theprojectsworld.com\/?p=142814"},"modified":"2023-10-17T21:14:21","modified_gmt":"2023-10-17T21:14:21","slug":"odds-of-melbourne-cup-day-rate-rise-shorten","status":"publish","type":"post","link":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/","title":{"rendered":"Odds of Melbourne Cup Day rate rise shorten"},"content":{"rendered":"

Save articles for later<\/h3>\n

Add articles to your saved list and come back to them any time.<\/p>\n

Home buyers and businesses could be saddled with a Melbourne Cup Day interest rate rise after the Reserve Bank revealed it was concerned about rising property prices while declaring it had a low tolerance for inflation remaining too high for too long.<\/p>\n

Unemployment and inflation figures due within the next week will sway the RBA board\u2019s decision in November, after the central bank admitted the jobs market had turned, suggesting unemployment was likely to rise.<\/p>\n

<\/p>\n

Minutes of the Reserve Bank\u2019s most recent meeting suggest it could lift rates next month.<\/span>Credit: <\/span>Kate Geraghty<\/cite><\/p>\n

Minutes of the bank\u2019s October meeting, at which it held the cash rate steady at 4.1 per cent for the fourth month in a row, revealed the board debated whether to lift rates further.<\/p>\n

The minutes included a new statement about the bank\u2019s preparedness to tackle inflation if it remained elevated, in a clear sign next month\u2019s meeting could result in another rate hike.<\/p>\n

\u201cThe board has a low tolerance for a slower return of inflation to target than currently expected,\u201d it said for the first time.<\/p>\n

\u201cWhether or not a further increase in interest rates is required would, therefore, depend on the incoming data and how these alter the economic outlook and the evolving assessment of risks.\u201d<\/p>\n

Treasurer Jim Chalmers said the government understood households were facing pressure from higher interest rates and high but moderating inflation.<\/p>\n

\u201cWhile inflation is moderating, it is more persistent overseas and it is expected to also be a bit more persistent here,\u201d he said.<\/p>\n

The minutes revealed board members were increasingly concerned about the lift in house prices, which have increased by 6.6 per cent nationally since January, and how this could encourage cash-strapped consumers to continue spending.<\/p>\n

\u201cThe rise in housing prices could also be a signal that the current policy stance was not as restrictive as had been assumed, although there was other evidence that monetary conditions were tight,\u201d the minutes said.<\/p>\n

\u201c[Board members] noted that while rising housing prices alone would not warrant tighter policy, the associated rise in household wealth could support consumption by more than currently assumed, especially if housing turnover were to pick up more quickly than expected.\u201d<\/p>\n

But in favour of holding rates steady, the minutes showed members worried that the full impact of past increases had yet to work through the economy.<\/p>\n

The minutes noted that inflation had eased to 6 per cent from its 7.8 per cent December peak, and spending growth was weak as people\u2019s real disposable incomes continued to fall.<\/p>\n

The slowdown in the jobs market, including a lift in the jobless and underemployment rates, might also be a signal that past rate rises were starting to bite.<\/p>\n

A quarter of a percentage point rate increase, if passed on in full by commercial banks, would add about $100 a month to repayments on a $600,000 mortgage.<\/p>\n

Westpac chief economist and former RBA assistant governor Luci Ellis said while it was still unlikely the central bank would lift interest rates, it was now a possibility.<\/p>\n

\u201cA significant upside surprise in the September [inflation] release, along with further evidence that the real economy is proving more resilient than expected, might be enough to change their view and thus their decision,\u201d she said.<\/p>\n

ANZ\u2019s head of Australian economics, Adam Boyton, said a rate rise in November would require the inflation figures to be \u201cuncomfortably high\u201d.<\/p>\n

Job figures out on Thursday are expected to show a slight lift in unemployment, but inflation data is forecast to show ongoing price pressures.<\/p>\n

A further lift in official interest rates would further slow an economy already struggling to grow.<\/p>\n

Deloitte Access Economics on Wednesday said it expected a per capita recession and a retail sector recession to rock the economy over the coming 12 months.<\/p>\n

It believes economic growth, currently at 2.1 per cent, will slow to just 1 per cent by the March quarter next year before picking up, driven in part by wages exceeding inflation for the first time in three years.<\/p>\n

Through 2024-25, Deloitte is expecting the economy to expand by 1.9 per cent and wages to grow 0.4 percentage points more than inflation.<\/p>\n

Deloitte partner David Rumbens said the Reserve Bank should continue to hold interest rates steady as inflation would continue to edge down.<\/p>\n

\u201cThe business cycle will soon be past its low point and start turning up again. Real wages will start rising in late 2023, and strong population growth provides foundational support,\u201d he said.<\/p>\n

\u201cBeyond the short-term economic cycle, there are also significant opportunities for Australia\u2019s businesses, through the adoption of AI, and from the necessary transformation to net zero emissions by 2050.\u201d<\/p>\n

Cut through the noise of federal politics with news, views and expert analysis. <\/b>Subscribers can sign up to our weekly Inside Politics newsletter.<\/b><\/em><\/p>\n

Most Viewed in Politics<\/h2>\n

From our partners<\/h3>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Save articles for later Add articles to your saved list and come back to them any time. Home buyers and…<\/p>\n","protected":false},"author":2,"featured_media":142813,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nOdds of Melbourne Cup Day rate rise shorten - The Projects World<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Odds of Melbourne Cup Day rate rise shorten - The Projects World\" \/>\n<meta property=\"og:description\" content=\"Save articles for later Add articles to your saved list and come back to them any time. Home buyers and…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/\" \/>\n<meta property=\"og:site_name\" content=\"The Projects World\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-17T21:14:21+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/theprojectsworld.com\/wp-content\/uploads\/2023\/10\/Odds-of-Melbourne-Cup-Day-rate-rise-shorten.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/\",\"url\":\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/\",\"name\":\"Odds of Melbourne Cup Day rate rise shorten - The Projects World\",\"isPartOf\":{\"@id\":\"https:\/\/theprojectsworld.com\/#website\"},\"datePublished\":\"2023-10-17T21:14:21+00:00\",\"dateModified\":\"2023-10-17T21:14:21+00:00\",\"author\":{\"@id\":\"https:\/\/theprojectsworld.com\/#\/schema\/person\/74db1979fe71b5ea01513ec1ce5bc609\"},\"breadcrumb\":{\"@id\":\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/theprojectsworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Lifestyle\",\"item\":\"https:\/\/theprojectsworld.com\/category\/lifestyle\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Odds of Melbourne Cup Day rate rise shorten\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/theprojectsworld.com\/#website\",\"url\":\"https:\/\/theprojectsworld.com\/\",\"name\":\"The Projects World\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/theprojectsworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/theprojectsworld.com\/#\/schema\/person\/74db1979fe71b5ea01513ec1ce5bc609\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/theprojectsworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d7cef2e0d8d634cb49d54f7c48b549a1?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d7cef2e0d8d634cb49d54f7c48b549a1?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Odds of Melbourne Cup Day rate rise shorten - The Projects World","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/","og_locale":"en_US","og_type":"article","og_title":"Odds of Melbourne Cup Day rate rise shorten - The Projects World","og_description":"Save articles for later Add articles to your saved list and come back to them any time. Home buyers and…","og_url":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/","og_site_name":"The Projects World","article_published_time":"2023-10-17T21:14:21+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/theprojectsworld.com\/wp-content\/uploads\/2023\/10\/Odds-of-Melbourne-Cup-Day-rate-rise-shorten.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/","url":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/","name":"Odds of Melbourne Cup Day rate rise shorten - The Projects World","isPartOf":{"@id":"https:\/\/theprojectsworld.com\/#website"},"datePublished":"2023-10-17T21:14:21+00:00","dateModified":"2023-10-17T21:14:21+00:00","author":{"@id":"https:\/\/theprojectsworld.com\/#\/schema\/person\/74db1979fe71b5ea01513ec1ce5bc609"},"breadcrumb":{"@id":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/theprojectsworld.com\/lifestyle\/odds-of-melbourne-cup-day-rate-rise-shorten\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/theprojectsworld.com\/"},{"@type":"ListItem","position":2,"name":"Lifestyle","item":"https:\/\/theprojectsworld.com\/category\/lifestyle\/"},{"@type":"ListItem","position":3,"name":"Odds of Melbourne Cup Day rate rise shorten"}]},{"@type":"WebSite","@id":"https:\/\/theprojectsworld.com\/#website","url":"https:\/\/theprojectsworld.com\/","name":"The Projects World","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/theprojectsworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/theprojectsworld.com\/#\/schema\/person\/74db1979fe71b5ea01513ec1ce5bc609","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/theprojectsworld.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d7cef2e0d8d634cb49d54f7c48b549a1?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d7cef2e0d8d634cb49d54f7c48b549a1?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/posts\/142814"}],"collection":[{"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/comments?post=142814"}],"version-history":[{"count":0,"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/posts\/142814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/media\/142813"}],"wp:attachment":[{"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/media?parent=142814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/categories?post=142814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theprojectsworld.com\/wp-json\/wp\/v2\/tags?post=142814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}