Inflation may not come down as quickly as the RBA would like, says Judo Bank Chief Economic Advisor Warren Hogan. It comes ahead of the latest monthly inflation rate for January which will be published on Wednesday and is surprisingly expected to increase. “I’m seeing more risks that inflation may not come down as the RBA desires,” Mr Hogan told Sky News Business Editor Ross Greenwood. “They already have the slowest return to target of any central bank in the world. “They themselves have said they have no room for that happening more slowly ..read more

Confidential Treasury analysis has revealed decade-high wages growth is now the largest driver of consumer price inflation. The analysis showed labour costs constituted almost two-thirds of headline CPI in the year to June 2023. Pay rises overtook import prices and supply shocks as the main contributor. The analysis undercuts claims widespread corporate price gouging is to blame for inflation. Wage growth has pushed the average full-time salary above $100,000 ..read more

The Australian Bureau of Statistics has announced wages during 2023 grew by 4.2 per cent – the biggest wage rise since 2009. Public sector wage rises are also the highest in 15 years. The ABS reported that Australia’s wage growth last year outstripped inflation for the first time in three years. Those who scored the biggest increases were in healthcare, which was up 5.5 per cent, as well as education and training – which lifted by 4.8 per cent. The federal government and Treasurer have urged for higher wages as inflation took off. Sky News Business Editor Ross Greenwood sat down with the head ..read more

The Australian Competition Tribunal has approved ANZ’s $4.9 billion takeover of Suncorp Bank. “This deal was first announced back in July 2022 – that’s when ANZ proposed this merger, buying out Suncorp’s banking business,” Sky News Business Reporter Edward Boyd said. “ANZ are only after Suncorp’s home loan book, which is worth about $67 billion – that was blocked by the ACCC in August last year.” The ACCC said the deal would reduce competition in the banking market. Australian Competition Tribunal Deputy President Justice John Halley has released a statement, saying: ‘The tribunal has conclude ..read more

There is renewed hope of a significant rate cut in 2024. The Commonwealth Bank expects the RBA will reduce the cash rate by 75 basis points. It will take rates down from 4.35 per cent to 3.6 per cent by the end of 2024. The bank also predicts cuts will continue in 2025, but some economists are not as optimistic. “Inflation is heading in the right direction, but I’d want to see maybe a little bit more evidence that it really is coming back under control,” REA Group Senior Economist Angus Moore ..read more

The Commonwealth Bank expects the Reserve Bank to start cutting official interest rates by September to stop unemployment from rising too high. This month, the RBA kept the cash rate on hold at 4.35 per cent. CBA economist Gareth Aird is sticking with his prediction of three rate cuts this year despite the jobless rate hitting 4.1 per cent last month. This will bring the official cash rate down from the current 4.35 per cent to 3.6 per cent by the end of 2024. Mr Aird sees another three rate cuts next year as the economy continues to slow ..read more

Network outages have affected six different banks across Australia. Customers from People’s Choice, Defence Bank and Ubank started to experience issues early yesterday morning. Bank Australia, Beyond Bank and P&N Bank were also affected. Some customers have been told to take care when making payments. The major banks are unaffected by the outage ..read more

Wesfarmers CEO Rob Scott says he is “very proud” of Wesfarmers for managing to grow sales and profit at a “challenging time” in the retail market. Wesfarmers pulled in three per cent profit – lifting to $1.4 billion. Mr Scott told Sky News Business Editor Ross Greenwood that the “really strong result” for Kmart was a win for consumers as well as Wesfarmers. “It was a win for consumers that are saving money with our lowest price positioning. “And it’s great for Wesfarmers shareholders ..read more

The Albanese government will soon embark on a multi-million-dollar marketing blitz to sell its revamped stage three tax cuts. Finance Minister Katy Gallagher has confirmed up to $40 million will be spent over two financial years to sell the government’s changes to the stage three tax cuts. The changes are designed to prop up low- and middle-income earners. Treasury officials revealed at Senate estimates on Wednesday that a new spin unit will be set up and specialists will be recruited to carry out the marketing blitz. It is understood the blitz will not take place until after the Dunkley by-el ..read more

Australia has made some “bad choices” over the last decade, as real wages are “lower now than 10 years ago”, which has never happened in Australia, according to Superpower Institute Director and economist Professor Ross Garnaut. Mr Garnaut and Superpower Institute Chair and former ACCC chair Professor Rod Sims have called for the carbon price to be revived at the National Press Club on Wednesday as it could raise as much as $100 billion a year. “We don’t pretend that everyone will put up their hands and say go as fast as you can; certainly the 105 companies that will be paying that levy, withi ..read more