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Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), has established a specialized unit to focus on private markets. The move comes as concerns persist about valuations in the sector. ASIC Chair Joe Longo stated that private markets are a top priority and that the regulator aims to ensure a level playing field between private and public markets. The lack of transparency in private markets has raised concerns about misconduct, conflicts of interest, poor valuation practices, and investor deception. The scrutiny of asset valuations and liquidity management practices has intensified as money management firms increase their holdings of unlisted assets. Australia's pensions industry, which is the fastest-growing retirement savings pool globally, has been investing heavily in private markets. ASIC is examining whether Australia's regulatory settings are influencing investor behavior and capital raising. [Extracted from the article]

Consumer sentiment in Australia has declined further in July due to concerns about potential interest rate hikes and persistent inflation. The Westpac Banking Corp. survey showed that pessimism outweighed optimism, with the sentiment index dropping 1.1% to 82.7 points. The index tracking consumer expectations for variable mortgage rates over the next 12 months saw the steepest monthly rise since the question was added to the survey in 2022. Economists are predicting that the Reserve Bank of Australia may tighten policy further, potentially raising the benchmark rate to 4.6%. [Extracted from the article]

Australian retail sales in May exceeded expectations, increasing by 0.6% from the previous month. This growth was driven by discounts offered by retailers in response to high borrowing costs. The strong sales figures further support the case for an interest rate hike this year. However, economists remain cautious due to the underlying weakness in the retail market, with sales rising just 1.7% from a year earlier. The Reserve Bank of Australia will meet in August to discuss the possibility of tightening policy further. [Extracted from the article]

Australian Retirement Trust, the nation's second-largest pension fund, disagrees with money markets that are betting on the Reserve Bank of Australia (RBA) raising interest rates at its next policy meeting. Despite higher-than-expected inflation, the pension fund believes the RBA will not raise rates in August and instead predicts that rates will remain unchanged for another year before the next move is a rate cut. The RBA has been cautious in tightening policy to preserve job gains, and while inflation is expected to fall back within the target range by late 2025, Governor Michele Bullock has not ruled out further rate hikes if necessary. The pension fund expects a soft economic landing in Australia and globally and sees opportunities in unlisted markets. The Australian pension industry is expected to finish the financial year with returns greater than 9%. [Extracted from the article]

The Reserve Bank of Australia (RBA) has decided to maintain its cash rate at 4.35%, signaling that a rate hike is still a possibility. The RBA's main goal is to control consumer prices while preserving job gains made since the pandemic. The bank acknowledged that inflation remains a concern and will continue to monitor the data and assess risks. The RBA's stance is in contrast to other central banks, such as the Bank of Canada and the European Central Bank, which have recently lowered rates. RBA Governor Michele Bullock has consistently pushed back against expectations of near-term easing, and analysts believe that rates will remain unchanged through 2024. The impact of income-tax cuts and cost-of-living rebates on the Australian economy is still uncertain. [Extracted from the article]

Australia's central bank, the Reserve Bank of Australia (RBA), has surprised the bond market by suggesting that it may raise interest rates again, despite global trends of keeping rates low. Governor Michele Bullock stated that persistent inflation has led the board to consider a rate hike, although they ultimately decided to keep borrowing costs unchanged. This announcement caused money markets to price in a 20% chance of a rate increase at the RBA's next meeting in August. While economists and money markets still anticipate a rate cut in 2025, the RBA's stance on potential rate hikes sets it apart from other major central banks. [Extracted from the article]

Australia's unemployment rate dropped to 4% in May, with the economy adding 39,700 jobs, exceeding expectations. The job gains were driven by full-time positions. The Australian Bureau of Statistics also reported that there are now nearly 600,000 unemployed people in the country, a decrease of 110,000 since March 2020. Despite the low unemployment rate, underemployment remained at 6.7% and underutilization at 10.7%. The labor market in Australia is considered a bright spot, with high levels of job vacancies and a relatively tight labor market. [Extracted from the article]

Australia's labor market is showing signs of weakening, despite the unemployment rate remaining low at around 4%. Early indicators suggest that underutilization has increased and the pace of hiring has slowed. Migrants who arrived in Australia within the past five years have experienced a rise in unemployment, while the jobless rate for 15- to 19-year-olds has also increased. Job advertisements have been declining, although there has been a recent uptick in healthcare and social assistance positions. The Reserve Bank of Australia expects unemployment to peak at 4.3% next year, but economists believe there may be more labor market slack than currently visible. [Extracted from the article]

Australia's economy experienced weak growth in the first quarter of the year due to high interest rates and cost of living pressures on households. Gross domestic product (GDP) increased by 0.1%, below economists' forecasts of 0.2%. The annual GDP growth of 1.1% was the weakest since 1992, outside of the pandemic. The Reserve Bank of Australia may face pressure to lower interest rates in response to the slowdown. Household spending was described as "very, very weak" by Governor Michele Bullock. Private investment fell by 0.8%, primarily driven by a decline in non-dwelling investment. The outlook for public demand remains strong, with additional government spending expected in the coming years. Overall, sluggish consumer spending and weaker residential construction are expected to continue to impact economic growth. The RBA predicts that annual economic growth will reach its lowest point at 1.2% in the middle of this year before recovering. [Extracted from the article]

Australia's inflation rate in April was higher than expected, indicating that price pressures are remaining strong and supporting the argument for the Reserve Bank of Australia (RBA) to maintain its current high interest rates. The consumer price indicator increased by 3.6% compared to the previous year, surpassing economists' predictions of 3.4%. The core measure, which excludes volatile items, remained at 4.1%. The RBA has kept its cash rate at 4.35% since November and is closely monitoring data to determine if further rate increases are necessary. [Extracted from the article]

The Australian jobless rate increased to 4.1% in April, surpassing expectations and indicating the impact of high interest rates on the economy. This has led to an increase in bets on policy easing in the money markets. The rise in unemployment is attributed to a larger number of people waiting to start jobs, which is expected to put downward pressure on the unemployment rate in the coming months. The Reserve Bank of Australia has kept its cash rate at a 12-year high to combat inflation, and the government has introduced measures to stimulate inflation. The labor market is still considered tight, but employment growth is expected to slow in the future. [Extracted from the article]

Australia's central bank, the RBA, acknowledges the ongoing supply-demand mismatch in the housing market and warns that it will not be resolved quickly, according to Assistant Governor Sarah Hunter. The lack of new supply is causing upward pressure on rents and prices, and the RBA expects it to take time for new housing projects to materialize. The housing crisis in Australia is the worst in living memory, with low levels of residential building permits and a backlog of construction work due to a shortage of skilled workers. The imbalance is evident in both the rental and established housing markets, with record-high median rents and rising home prices. The RBA is expected to keep interest rates unchanged until November, and potential solutions to the housing market imbalances include increasing average household sizes, moderating construction costs, and increasing new supply based on the RBA's liaison program. However, the RBA predicts that residential construction activity will remain subdued. [Extracted from the article]

Australian wage growth slowed in the first quarter of the year, marking the first deceleration since the fourth quarter of 2020. The Wage Price Index increased by 4.1% compared to the previous year, slightly below economists' expectations. This development has led to speculation that the Reserve Bank of Australia (RBA) may cut interest rates later in the year, with a 36% chance of easing in December. The RBA is closely monitoring inflation and the labor market, with employment data expected to show a slight increase in the jobless rate for April. [Extracted from the article]

Australia's largest pension fund, AustralianSuper, plans to increase its investments in private-market assets and expand its exposure to overseas assets. The fund's Chief Investment Officer, Mark Delaney, believes that now is a better time to invest in private markets compared to a few years ago when valuations were higher and deals were scarce. Delaney also mentioned that the fund is looking to increase its offshore asset allocation from 50% to two-thirds of its portfolio, with a focus on infrastructure, private equity, and private debt. The Australian pension industry is projected to triple in size by 2048, making it an attractive market for investment opportunities. [Extracted from the article]

Australian economists have adjusted their forecasts for the Reserve Bank's easing cycle, predicting that the bank will lower its cash rate to 4.1% in the third quarter of the year. This reflects a slight downgrade in inflation estimates and aligns with current money-market pricing. The revised outlook is due to a deceleration in inflation, with economists now expecting CPI to reach the top of the central bank's target range in the fourth quarter of this year. While the Reserve Bank raised its cash rate in November, most economists believe that the next move will be a rate cut, given the cooling inflation and rising unemployment. [Extracted from the article]

(Bloomberg) -- Australian employment came in weaker than expected in September, reflecting the Reserve Bank's assessment that the labor market has reached a "turning point", while fewer people searching for work sent the jobless rate lower. Economists expect the pace of gains to slow further with the jobless rate seen climbing to 4.5% next year. [Extracted from the article]

(Bloomberg) -- Australian jobs rebounded in August following a surprise drop while the unemployment rate held steady, suggesting the labor market is managing to cope with the Reserve Bank's 12 interest-rate increases. Economists expect the pace of employment gains to slow further with the jobless rate seen hitting 4.5% next year. [Extracted from the article]

(Bloomberg) -- Australia's unemployment rate rose more than expected in July as the economy surprisingly shed jobs, signaling the labor market may be approaching a turning point and sending the currency lower. The RBA has hiked by 4 percentage points since May 2022 to take the cash rate to 4.1% as it grapples with sticky inflation. [Extracted from the article]

(Bloomberg) -- Australia's interest rate meeting is dividing economists and money markets on whether the Reserve Bank will stand pat to assess the impact of previous tightening or raise again to forestall upside risks to prices. "The debate will likely be over zero or 25 basis points as the RBA deliberates on just how restrictive rates need to be", said Su-Lin Ong, chief economist for Australia at Royal Bank of Canada. [Extracted from the article]

(Bloomberg) -- Australia's recent upside surprises in inflation are testing the Reserve Bank's patience, Governor Philip Lowe said, highlighting a rebounding housing market, strong wage gains and persistent service price pressures. The RBA is concerned that stronger services inflation, expectations that electricity costs will rise further this year and soaring rents will see more persistent inflation, Lowe said. [Extracted from the article]

That prompted investors to start repricing rate expectations, with money markets now showing the RBA's current 3.6% rate as the peak of its tightening cycle, having earlier seen a terminal rate of 4.1%. (Bloomberg) -- Australia's financial stability is sound as its banks remain well capitalized, allowing the central bank to stick with policy tightening, according to Alex Joiner, chief economist at one of the nation's biggest asset managers. [Extracted from the article]

Consumer and business confidence are beginning to converge after an extended split while the RBA delivered it sharpest tightening cycle in 33 years to contain inflation. (Bloomberg) -- Australian business confidence slipped into negative territory and household sentiment remained deeply pessimistic, separate surveys showed Tuesday, bolstering the case for the Reserve Bank to pause its tightening cycle. [Extracted from the article]

The survey showed that 74% of respondents polled after the RBA's policy decision expect rates to move higher over the next year, with 45% expecting a hike of 1 percentage point or more. (Bloomberg) -- Australia's consumer confidence held near a 30-year low as households fretted over mounting cost of living pressures and further policy tightening, bolstering the case for the Reserve Bank to hold interest rates next month. [Extracted from the article]

"The near-term outlook for residential building has continued to worsen over recent months", said Maree Kilroy, a senior economist at BIS Oxford Economics, adding more interest rate hikes will further weigh on demand. (Bloomberg) -- Approvals to build new homes in Australia fell by the most on record in January, with permits for private houses tumbling, suggesting weak residential property investment will continue to drag on the economy. [Extracted from the article]

(Bloomberg) -- Australia's surprisingly slower economic growth and monthly inflation data may prompt the Reserve Bank to reconsider how aggressive it needs to be with future interest-rate increases. "So I think we're getting close to that RBA pause, maybe one more rate hike in March and then I think the risk is that the RBA will pause.". [Extracted from the article]

The argument for a half-point hike was driven by a "pattern of incoming prices and wages data exceeding expectations, and a risk that high inflation would be persistent", the minutes showed. (Bloomberg) -- Australia's central bank considered two options for the size of its first interest-rate increase of 2023, minutes of its February meeting showed, eventually opting for a 25 basis-point adjustment while making a surprisingly hawkish policy shift. [Extracted from the article]

Money markets imply a peak rate of 3.9% by mid-2023, higher than economists' forecast of 3.6%, as inflation remains well above the RBA's target and isn't expect to return to it for more than two years. (Bloomberg) -- Australia's central bank raised interest rates by a quarter-percentage point and said further tightening will be needed to crush stubbornly-high inflation, sending the currency and bond yields higher. "The RBA Board has essentially made up their mind and intend to raise the cash rate further over coming months", said Gareth Aird, head of Australia economics at CBA. [Extracted from the article]

New Zealand's central bank late last month forecast a terminal rate of 5.5% next year and the Fed is also expected to keep tightening. (Bloomberg) -- Australia's central bank raised its key interest rate for an eighth consecutive month and gave itself flexibility for future decisions as inflation shows signs of moderating and home prices decline. [Extracted from the article]

An excerpt from "Top 5 Stocks for 2017" by Martin Roth is presented which seeks to compare sales and profits across companies and finds financial ratings for top Australian companies.

The median estimate of economists polled by Bloomberg as well as money market pricing is for the cash rate to peak at 3.1% in December, which implies three quarter-point increases at each remaining meeting this year. "If the RBA delivers a 25-basis-point hike on Oct. 4 and Q3 CPI prints hot in late October, the RBA could still hike 25-bps in November, stating a strong commitment to continue hiking", he said. [Extracted from the article]

Australia's central bank chief staked out an outlier position among G-10 currency nations, signaling a potential end to outsized interest-rate increases. Andrew Ticehurst, senior economist at Nomura, expects the RBA "will ultimately be dragged along by hawkish central bank action elsewhere.". [Extracted from the article]

"All else equal, the case for a slower pace of increase in interest rates becomes stronger as the level of the cash rate rises", Lowe said in Sydney. The currency sank and bonds rallied as Reserve Bank Governor Philip Lowe highlighted that rates have risen very quickly and pointed to "lags" in their flow-through to the economy. [Extracted from the article]

Keywords: ALLTOP; ASIA; ASIATOP; AU; BON; BUSINESS; CMD; COS; ECOTOP; FRX; GOV; MARKETS; TOP; WORLD; WWTOP; WWTOPAS EN ALLTOP ASIA ASIATOP AU BON BUSINESS CMD COS ECOTOP FRX GOV MARKETS TOP WORLD WWTOP WWTOPAS Australia's economy powered ahead in the three months through June, underscoring the strong momentum the Reserve Bank has highlighted as it delivered a series of rapid interest rate increases. RHRIQZT0G1KW (Bloomberg) -- Australia's economy powered ahead in the three months through June, underscoring the strong momentum the Reserve Bank has highlighted as it delivered a series of rapid interest rate increases. [Extracted from the article]

Australia's central bank gave itself wriggle room to adjust the pace of interest-rate increases if the economic outlook deteriorates after delivering the sharpest policy tightening in a generation. "While the language and sentiment are not new, the emphasis appears a little stronger in laying the groundwork back to a more modest pace of tightening", said Su-Lin Ong, chief economist for Australia at Royal Bank of Canada. The RBA "could be setting expectations for a smaller increase in the cash rate", said Diana Mousina, a senior economist at AMP Capital Markets who expects a quarter-point increase next month. [Extracted from the article]

The Reserve Bank on Tuesday increased its cash rate to 1.85% -- the highest level in more than six years -- in a move that was predicted by all but two of 30 economists surveyed by Bloomberg. (Bloomberg) -- Australia's central bank raised interest rates by a half-percentage point for a third consecutive month and gave itself wriggle room to change path if the economic outlook deteriorates. [Extracted from the article]