Economic Outlook

Outlook 

Australia’s economy appears to be improving judging by solid results in business surveys, employment and retail spending. There was a further strong gain in employment in May with the unemployment rate remaining steady at 3.9% which is the lowest since 1974. However, the inflation acceleration is concerning. The Reserve Bank Governor noted that the central bank expects Australia’s annual consumer inflation to peak at 7.0% at the end of the year fueled by higher electricity and gas prices. In response to these persistent inflation pressures, the Reserve Bank raised the cash interest rate by 0.5% to 0.85 % in June with further increases expected.

Article written 4 July 2022.

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