MONEY MASTER

  Australia's millennial households , those aged 29 to 43, have seen the steepest decline in real average disposable incomes over the past two years, according to Goldman Sachs Group Inc , leading to a downgrade in economic growth estimates for the country. Real incomes for millennial households have dropped by 9.4% during this period, marking the largest decline among any age group, Goldman estimates. Inflation, higher taxes, and rising interest rates have disproportionately impacted this cohort, which tends to spend heavily on discretionary items , said economist William Nixon in a note to clients on Friday. Nixon pointed out that younger and middle-aged households face major financial headwinds , compounding the effects of inflation that have affected all age groups. This decline in income is expected to result in a more gradual recovery in consumption than previously estimated, with the government's recent tax cuts having a limited impact . Goldman has revised its agg...

Reserve Bank of Australia (RBA) Governor Michele Bullock reiterated on Thursday that it is too early to consider near-term interest rate cuts, despite recent economic data showing the economy is struggling and inflation has eased slightly. Key Points from Bullock's Speech: Inflation Priority: Bullock emphasized that reducing inflation to the target range of 2-3% remains the RBA's top priority. Current inflation, although slightly lower, remains above target. No Immediate Rate Cuts: She stated that, based on current economic projections, the RBA is not in a position to cut rates in the near term, maintaining a hawkish stance despite weak economic growth. Economic Conditions: Recent data indicated minimal growth in the second quarter, primarily due to weak household consumption. Additionally, a consumer price report showed headline inflation easing to 3.5% in July. Inflationary Pressures: Bullock pointed out that domestic inflationary pressures, such as those in housing and marke...

Australia's economy remained in low gear in the June quarter, with household spending acting as a drag on growth amid high borrowing costs and persistent inflation. The data from the Australian Bureau of Statistics showed a lack of momentum, with government expenditure emerging as the primary driver of growth. Key Takeaways: Stagnant Economic Growth : Real GDP growth was a modest 0.2% for the third consecutive quarter, slightly below market forecasts of 0.3%. Annual growth slowed to 1.0%, reaching levels last seen during the 1990s recession, apart from the pandemic distortions. Household spending, which constitutes half of GDP, fell by 0.2%, reflecting reduced expenditure on overseas travel and a continued low savings rate of 0.6%. Inflationary Pressures Remain High : Despite the Reserve Bank of Australia (RBA) raising interest rates to a 12-year high of 4.35% to combat inflation, underlying inflation remained elevated at 3.9% last quarter. Measures of inflation within the GDP repo...