And the RBA backs Malcolm all the way to prosperity for Australia.

No surprise the Lefties are stuttering and muttering in despair as they see their Socialist Moon slipping out of sight.




Reserve Bank keeps interest rates on hold at historic low of 1.5% in June
Eryk Bagshaw JUNE 6 2017

The Reserve Bank of Australia (RBA) has left the cash rate at a record low 1.5% for the 10th consecutive month.

The decision was unanimously predicted by economists thanks to meager gross domestic product (GDP) growth, stubbornly low wages and soft construction, despite surprisingly strong retail sales figures.

In his statement, Reserve Bank governor Philip Lowe highlighted that "slow growth in real wages" was restraining growth in household consumption.
"Employment growth has been stronger over recent months, although growth in total hours worked remains weak," he said.
"Wage growth remains low and this is likely to continue for a while yet."

The last time the central bank adjusted rates was in August when inflation slowed to 1%, but it has since moved back towards the bank's target band of between 2 and 3%.

Dr Lowe said inflation was expected to increase gradually as the economy strengthened.


Reserve Bank governor Philip Lowe highlighted "slow growth in real wages" for restraining growth in household consumption. Photo: Bloomberg

5 of 23 forecasters surveyed by Bloomberg are now predicting a cut within the next year, as house prices begin to cool in the overheated eastern housing markets.

During the seasonally weak month of May, property monitor CoreLogic reported a month of house prices going backwards nationally for the first time in 18 months.


The last time the central bank adjusted rates was in August when inflation slowed to 1%. Photo: Peter Braig

Dwelling prices fell 1.7% in Melbourne and 1.3% in Sydney.

Dr Lowe noted the developments in his statement.


NAB chairman Ken Henry said the Reserve Bank has been waiting for years to see non-mining business investment.  Photo: Christopher Pearce

"Prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease," he said. "In other markets, prices are declining."

CoreLogic's head of research, Tim Lawless, said: "If this recent slowing develops into a more sustained trend, the Reserve Bank may be able to consider alternative scenarios to a steady cash rate."

The more house prices calm down, the more room the RBA has to cut rates by minimising the risk of stoking the market.

But Mr Lawless warned the last time rates were cut, in August last year, "the housing market reignited, with capital gains accelerating and investors surging back into the market".

He said recent moves by the Australian Prudential Regulation Authority to crack down on investor loans should avoid a repeat scenario if the central bank were to cut within the next year.

Dr Lowe said the recent supervisory measures should help address the risks associated with rising levels of indebtedness.

He noted lenders had announced increases in mortgage rates, particularly those paid by investors and on interest-only loans.



The governor said GDP growth was expected to have slowed in the 3 months to the March quarter, when the statistics are released on Wednesday, reflecting the quarter-to-quarter variation in the growth figures.

"Looking forward, economic growth is still expected to increase gradually over the next couple of years to a little above 3%," he said. "The transition to lower levels of mining investment following the mining investment boom is almost complete."

Former Treasury secretary and NAB chairman Ken Henry said the Reserve Bank has been waiting for years to see non-mining business investment.

"It hasn't really happened," he said. "On average across the economy, non-mining business investment is not as strong as it needs to be to build a sustainable macroeconomic recovery."

Capital Economics' chief Australia & New Zealand economist, Paul Dales, said the forecasting group had revised down its GDP forecast from 0.3% to -0.5%, the second GDP contraction in 9 months, putting Australia on track for a 1.4% annual growth. 

"Things would get very tricky for the RBA if GDP fell in the first quarter and fell in the 2nd quarter," he said, referring to the next set of GDP figures due in September.

"Even if the RBA still doesn't want to cut interest rates below 1.5% for fear of stoking the housing market and even if it thinks any such recession is due to temporary factors, it would be very brave for it to sit on its hands when the papers are shouting about the first recession in 26 years."

http://www.smh.com.au/business/the-economy/reserve-bank-keeps-interest-rates-on-...

Shorty is caught in a cleft stick with the corrupt Commo unions on one side and the grasping grizzling Greenies on the other side.

So while Shorty snoggers on about causing a housing collapse by stopping this and that, the financially astute Malcolm quietly cools the housing market with intelligence.




House prices go into reverse for first time in 18 months
Emily Cadman JUNE 1 2017

House prices fell in May for the first time in 18 months as lending restrictions bite.

Australian house prices fell in May for the first time in 18 months, as a 'perfect storm' of conditions dampened demand.

VIDEO: Australian housing affordability worsens

Low interest rates are fueling a high demand for housing despite tighter lending rules, says St. George Bank Senior Economist Janu Chan.
Home values in Australia's state and territory capitals fell 1.1 per cent last month from April, according to CoreLogic data released Thursday. Still, prices across the combined capitals were 8.3 per cent higher than a year ago.

The monthly decline comes after regulators tightened lending curbs amid fears of a housing bubble, and the nation's banks raised interest rates -- especially for interest-only loans which are popular with property investors seeking to take advantage of tax breaks.

"It appears that a perfect storm of factors have dented confidence in housing, and led to some heat coming out of the market," said St George senior economist Janu Chan.

"Nonetheless, we do not expect widespread, large scale price falls given that interest rates are expected to remain low and absent a spike in unemployment."

CoreLogic's Head of Research Cameron Kusher also cautioned against calling an end to the property boom.

"We haven't called the peak of the market yet. We want to see more data, we don't want to jump in too early," said Cameron Kusher, head of research Australia at CoreLogic.


Slowing demand in Sydney and Melbourne weighed on national house prices. Photo: Peter Braig

"The market has lost momentum, particularly in Sydney and Melbourne where affordability constraints are more evident and investors have comprised a larger proportion of housing demand," said CoreLogic's Director of Research Tim Lawless.

Lawless said he expects investor demand for property to slow, but not stall as potential returns from other investments such as cash and bonds remain low. Australia's record low interest rates have been a key factor in driving demand for buy-to-let properties.



Citigroup Inc. chief economist Willem Buiter yesterday said Australia is experiencing a "spectacular housing bubble" which needs to be addressed with tougher regulatory measures.

"It had better be focused on immediately, to try and tether a soft housing landing," Buiter said. "Clearly if these things are not managed well they can be a trigger for a cyclical downturn."

The monthly drop was led by declines of 1.3 per cent in Sydney and 1.7 per cent in Melbourne, the two cities where prices have risen the fastest. In Sydney, prices have gained 75 per cent in the past five years, ranking it behind only Hong Kong as the world's least affordable housing market.

http://www.smh.com.au/business/the-economy/house-prices-go-into-reverse-for-firs...

Is copper internet financial brilliance is it?



That is the whole political history for the fake conservatives in the 21st century, end of story!

juliar wrote on Jun 8^th, 2017 at 9:10am:

It is going to be so fkkn funny beating juliar over the head with its own frothy-mouthed nonsense when the looming recession hits in the next 12 months or so.

How did Juliar's prediction for the WA election pan out? It was so far off reality it's not on the same planet.

Bam wrote on Jun 8^th, 2017 at 1:50pm:


There is a correlation with the number of BS with how badly coalition is doing.  A positive correlation.

With Malcolm's steady hand on the tiller it is steady as she goes as Australia slowly recovers from its almost mortally wounded state as a result of the criminal neglect of national responsibility by the Labor govt during their six sick years of Socialist waste and disgrace.

The OECD slams Labor's disgraceful housing policy as grossly irresponsible.




Fall in house prices is the biggest risk facing Australia: OECD
Colin Brinsden 7:53pm, Jun 7, 2017 Updated: 7:57pm, Jun 7


Australia's economy will be in trouble if house prices drop, warns the OECD Photo: Getty

Australian economic growth will reach a rate of almost three per cent by the end of 2018 and an improving environment will prompt the Reserve Bank to start raising interest rates later this year, according to The Organisation for Economic Cooperation and Development.

The OECD uses its latest Economic Outlook to paint this rosy picture of higher wages and employment growth as business investment gathers pace outside the mining sector, which will boost consumer spending.

The report comes after the Australian Bureau of Statistics figures showed the economy grew by 0.3% in the March quarter, for an annual rate of 1.7%.

However, the OECD warns the possibility of a large fall in house prices is the largest single risk facing the economy, which could reduce household wealth and spending and damage the construction sector, leading to significant job losses.

“Higher interest rates will relieve some of the pressure on the booming housing market,” the OECD said on Wednesday.

It will also help counter the build-up of other financial distortions that can accompany a sustained low-interest-rate environment.

Australian commodities linked to the Chinese economy remain an important source of income and growth, but also bring “uncertainty and risk”.

The Paris-based institution said poor weather has disrupted commodity exports and the rebound in commodity prices appears to have ended.

On the federal budget, it believes the government’s approach to deficit repair is “broadly appropriate” given the projected economic growth outlook.

However, it again urged the government to undertake further tax reform that makes greater use of efficient taxes, like the GST and land tax.

It also notes the country’s visa programs for migrant workers and citizenship conditions are being tightened.

“Care should be taken to ensure that these policies do not compromise Australia’s access to the global talent pool,” it said.
-AAP

http://thenewdaily.com.au/money/property/2017/06/07/house-prices-largest-single-...

Labor's road to ruin economic "policy" goes up in flames ?