What interest rate cuts do to the Australian dollar

The Reserve Bank of Australia cut the official cash rate by 25 basis points to 1.75% in May, making this the first cash rate cut since May 2015. The decision was a tough call amid lower than expected inflation, low consumer sentiment and a downward trend in house price growth. The cut had a powerful effect on…

Inflation seems to have disappeared in a puff of dust

Whoa, there! It seems that inflation has disappeared into a puff of dust! Nothing like an outlying result to shake things up a bit, and today’s Consumer Price Index (CPI) or inflation result for the March quarter was an absolute ripper!  Headline inflation printed negative at -0.2 per cent. This was miles below expectations and…

Inflation remains well in check (the door is ajar...)

The ABS released its Consumer Price Index data for the March quarter today. The figures revealed that headline inflation slowed all the way to just 1.3 per cent, after recording a benign 0.2 per cent rise in the quarter. The big deflationary contribution came from fuel costs which declined by a massive 12.2 per cent in the…

Is inflation a friend or foe of the property investor?

O.K. there’s lots of talk about inflation – what is it? And what does it mean for those of us interested in property investment? Inflation is defined as a general increase in prices and a decline in the purchasing power of money. We’ve had periods of high inflation in Australia and as a result our…

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