May Newsletter 2023
As the days get shorter and temperatures begin to fall, Federal Treasurer Jim Chalmers delivers his second Budget – Tuesday 9 May.
All eyes were on the Reserve Bank board as it met prior to the Federal Budget to decide whether or not to increase the cash rate. The board decided to increase the cash rate from 3.6% to 3.85%.
The good news is that there are signs inflation is slowing. The latest figures show the annual rate at 7%. The March quarter saw prices rise just 1.4%, the lowest increase in two years, although consumers are still feeling the pressure of rising prices in a number of areas. The most significant contributors to inflation remain fuel and utility prices, medical and hospital expenses, tertiary education and domestic travel costs.
The welcome inflation easing and a rally on Wall Street buoyed local markets a little with the ASX200 ending the month slightly higher.
The unemployment rate remains at a near 50-year low of 3.5%. With consecutive months of strong growth in female employment (up 81,000 over the past two months), the female participation rate increased to a record high of 62.5%.
The Australian dollar held on at just over US66 cents against the US dollar.
Meanwhile, iron ore prices have been tumbling as China’s property market falters and there are fears the falls could continue.
Getting your Bounce back
Life is pretty frantic, and it is common to feel like it’s a struggle to keep up the pace.
Why an emergency fund delivers peace of mind
Imagine that you have a secret cash stash – an emergency fund – that will cover the costs, giving you the mental space to deal with the problem.
Federal Budget 2023/24 Analysis
Treasurer Jim Chalmers bills his 2023 Federal Budget as an economic strategy to help ease cost-of-living pressures.
As always, if you would like to discuss the contents of this newsletter please give us a call 07 5559 5760.
Hugh Robertson