News

Wealth Pi Fortnightly Economic Snapshot

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Interest Rates

Probability of rate cut at next RBA meeting in May 2024 is at 16 % for 25bp.

RBA

Rates look to be on hold for coming months and the market is pricing rate cuts in the second half of 2024.

Australian Markets

The seasonally adjusted unemployment rate fell by 0.4 percentage points to 3.7 per cent in February, according to data released today by the Australian Bureau of Statistics (ABS).

Global Markets

US:

Residential brokerages, portals moving higher as February Existing Home Sales beat FactSet consensus by +11.4%, posting a +9.5% increase m/m. Companies sold off last week following NAR settlement, though saw significant rebound yesterday following unchanged Fed dot plot, forecast for three rate cuts by YE24.

UK:

UK press tied changes in mortgage deals to softer-than-expected inflation, which came in at 3.4% in February. Market shortened odds of a June cut and swap rates fell to lowest level since September 2021 (Sky News).

Property

A recent suburb-level analysis using CoreLogic’s interactive Mapping the Market tool found that 88.4% (4,087) of the 4,625 house and unit markets analysed nationally saw values rise over the year. This is up from just 52.9% of markets studied in July 23 (2,456/4,640), recording positive annual growth and up from the 39.1% assessed in February 2023 (1,851/4,732).

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