From 2h agoKey events2h agoGovernment repositioning on jobseeker2h agoGovernment to subsidise energy bills: Chalmers3h agoGood morningFilters BETAKey events (3)Jim Chalmers (9)Taylor Taylor (5)ABC News Breakfast (5)Australia (3)Guardian Australia (3)13m ago21.16 EDT
Budget and data to measure wisdom of RBA interest rate rise decision
The strength of the national economy will take centre stage this week as financial markets turn their attention to the federal budget and a fresh round of confidence and spending data.
Last week, the central bank trimmed its growth projections and now sees gross domestic product bottoming out at 1.25 per cent by the end of this year, down from 1.5 per cent.
Growth is then likely to gradually pick up to two per cent by mid-2025, the Reserve Bank of Australia said in its quarterly statement on monetary policy released on Friday.
This outlook will be measured against the new federal Treasury’s growth forecasts in the budget to be handed down by treasurer Jim Chalmers at 7.30pm on Tuesday.
But earlier on Tuesday, new data on business and consumer confidence and consumer spending will be published.
The National Australia Bank business survey for April will deliver the latest measures on conditions and whether firms are absorbing costs or passing them on.
The May Westpac-Melbourne Institute consumer confidence report will also be released, along with Australian Bureau of Statistics retail trade numbers for the March quarter and the Commonwealth Bank of Australia’s household spending indicators for May.
The Reserve Bank, which has raised interest rates 11 times since May 2022 in a bid to curb inflation, keeps a close watch on retail data for signals on consumer spending and confidence.
– AAP
Updated at 21.24 EDT24m ago21.04 EDT
Rising commodity prices ‘not the biggest part of the contribution’ to budget health
Federal treasurer Jim Chalmers has told the ABC’s Andrew Probyn that “all will be revealed on Tuesday night” when the budget is released.
The treasurer has continued his media blitz on Sunday by hosing down budget speculation. The interview was much of what has been repeated elsewhere – there will be a focus on inflation, cost-of-living pressures remain high, changes to the PRRT and some help across the board.
On the health of the budget itself, Chalmers said “there will be a substantial improvement in the budget in the near term”.
The pressures on the budget after that intensify these. We will make clear on Tuesday night what the budget position is.
Chalmers was quick to hose down speculation about the role commodity prices have played in the changing budget position saying “they are not the biggest part of the contribution”.
Commodities are an important part of the story, they are not the biggest part of the story, only about one thing of the improvement is from higher commodity prices. The biggest part of it, the 40% contribution is from improvements in the Labor market, low unemployment and…
2023-05-06 20:24:01
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