Consumers Downbeat but Jobs Market Strength Continues

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The latest consumer sentiment data showed that the mood among households has become increasingly downbeat. Sentiment is now nearing levels seen during previous crises.
What factors are weighing on confidence?
We also received an update on how the jobs market is faring and the Fair Work Commission delivered its minimum wage ruling.
What will this mean for households?
Finally, the US Federal Reserve delivered another interest rate hike.
How big was the increase and what might it mean for other central banks?

See our short video below to find out more.

Economic Insights - 17 June 2022

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Inflation and rate hikes remain front of mind for households and businesses. This week, we received an update on how consumer and business confidence is faring in the face of strong inflation and the first increase in the cash rate in more than a decade.
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This week, the Reserve Bank raised the official cash rate by 25 basis points from a record low of 0.1%. The cash rate now stands at 0.35%. This was the first hike since November 2010 and marks the beginning of the end of ultra-cheap money.
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The Reserve Bank’s (RBA) April board meeting quickly regathered the attention of headlines last week. The RBA has turned a corner and has laid the groundwork for its first cash rate hike in over a decade, making the question of ‘when’ all the more important.
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