News

Wealth Pi Fortnightly Economic Snapshot

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Interest Rates

The RBA Rate Indicator suggests a 3% probability of an interest rate decrease at the Reserve Bank of Australia’s next meeting in December 2024, with the current cash rate holding steady at 4.35% as market expectations show little likelihood of immediate rate cuts. 

RBA

 

The Reserve Bank of Australia’s November 2024 Monetary Policy Statement highlights a gradual decline in inflation, which remains above target, with the cash rate unchanged at 4.35%, reflecting efforts to balance restrictive monetary conditions against economic growth recovery and wage moderation, while forecasting inflation’s sustainable return to target by late 2026 amid persistent economic uncertainties. 

Australian Markets

 

In October 2024, Australian dwelling approvals rose 4.2%, driven by a 24.8% surge in private sector apartments, especially high-rise units in NSW and Victoria, while private house approvals fell by 5.2%, marking mixed trends across states and sectors. 

 

Global Markets

US: 

In the US market, Mortgage rates slightly decreased to 6.81%, while pending home sales rose 2% in October as buyers responded to earlier rate dips, though home prices fell modestly and new listings increased amid prolonged market adjustments. 

UK: 

UK house prices are forecast to rise by 2.5% in 2025, supported by income growth and steady mortgage rates, while sales volumes are expected to increase by 5% despite affordability challenges and higher stamp duty impacting southern England more significantly. 

Property

CoreLogic’s Home Value Index rose by just 0.1% in November 2024, marking a slowdown in Australia’s national housing market as Sydney, Melbourne, and other cities experience declining values, while regional areas and mid-sized capitals show easing growth amid increased listings and reduced sales activity. 

 

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