08 JUNE EDITION
IF I AM CONSIDERING SELLING , WHY GO TO MARKET NOW ?
SUMMARY
• Economy firing on all cylinders
• RBA keeps cash rate on hold
Drum roll please . The economy is back ! Australia ’ s economic performance in the March quarter was among the best in the world and the Government has timed the withdrawal of support well . There ’ s great news all-round - housing prices are rising , private demand accounted for all of the growth in the March quarter , with public final demand flat . Business investment is recovering ; household disposable income increased in the March quarter supported by compensation of employees ( wages and salaries ); and ABS analysis of the payrolls data shows that termination payments as a per cent of total wages paid look to have peaked in all sectors in the December quarter .
Of course , Victoria ’ s lockdown is a timely reminder not to become complacent . The roll-out of the vaccine remains critical for further easing of social distancing and opening borders , as well as remaining competitive in the global landscape .
Most experts agree the central bank won ’ t move rates higher until at least the fourth quarter of 2022 . While the economic recovery is faster than expected , the RBA ’ s conditions for a rate hike are still far from being met . Australian unemployment is at 5.5 per cent , but Reserve Bank Governor Philip Lowe has said the bank wants to achieve “ full employment ”, or an unemployment rate below five per cent .
“ The economic recovery in Australia is stronger than earlier expected and is forecast to continue ,” Dr Lowe wrote in his monthly statement . “ The bank ’ s central scenario is for
“ The economic recovery in Australia is stronger than earlier expected and is forecast to continue .”