Forecasting
Moody's sees house prices rising by about 12 per cent over the next two years in Australia at the 8 capital city aggregate level, with apartment prices to rise by just over 10 per cent.
Source: Moody's
The gains are set to be driven by Sydney and Melbourne.
Truly, I've no idea how you'd run a sub-regional forecast by property type - let alone incorporating price growth to one decimal place - but here they are anyway!
For Sydney:
...and for Melbourne:
Fiscal consolidation (AAA)
In other ratings agencies news, Fitch affirmed Australia's AAA rating with a stable outlook, thanks to the government's commitment to the fiscal position and consolidation, and with a surplus forecast for FY19 and beyond.
In other ratings agencies news, Fitch affirmed Australia's AAA rating with a stable outlook, thanks to the government's commitment to the fiscal position and consolidation, and with a surplus forecast for FY19 and beyond.
The Coalition government has copped plenty of media flak for continuing to pursue its long-promised surplus.
On the other hand, monetary purists have been frustrated that the RBA's Lowe isn't vowing to do 'whatever it takes' to get inflation back to target, through downplaying the role of fiscal stimulus in favour of a commitment to hit the target.
Ms. Quick has a smarter way with words than me, and would doubtless say that monetary policy is like sex - being 99 per cent in the head (or is it like seduction, being 99 per cent talk, 1 per cent action? I never can remember), while the impact of fiscal stimulus won't amount to the proverbial hill of beans.
That is to say: commitment to the target matters, and if markets perceive a lack of commitment then EMH takes over blunting any token efforts.
As economist Stephen Kirchner has highlighted, issuing government bonds to mete out the widely discussed fiscal stimulus could result in a crowding out effect, appreciating the currency, impacting net exports, and hampering the role of monetary policy.
That is to say: commitment to the target matters, and if markets perceive a lack of commitment then EMH takes over blunting any token efforts.
As economist Stephen Kirchner has highlighted, issuing government bonds to mete out the widely discussed fiscal stimulus could result in a crowding out effect, appreciating the currency, impacting net exports, and hampering the role of monetary policy.
The Reserve Bank must not shirk its 'singular responsibility for demand management', posits Kirchner.
In today's Canberra speech the Governor mirrored the Board Minutes in reiterating that the Board is prepared to ease further to reach full employment and for inflation to hit the target:
We aren't presently close to full employment or to the inflation target (hence I mused here upon the looming November meeting).
However, for the final word, back to BQ:
In today's Canberra speech the Governor mirrored the Board Minutes in reiterating that the Board is prepared to ease further to reach full employment and for inflation to hit the target:
We aren't presently close to full employment or to the inflation target (hence I mused here upon the looming November meeting).
However, for the final word, back to BQ:
There's a little bit riding on Wednesday's inflation figures for Q3.
