Truck Loans Australia :: News
SHARE

Share this news item!

Interest Rate Hikes Unlikely as Inflation Expected to Drop: Westpac

Interest Rate Hikes Unlikely as Inflation Expected to Drop: Westpac

Interest Rate Hikes Unlikely as Inflation Expected to Drop: Westpac?w=400
Westpac's senior economist, Justin Smirk, has expressed skepticism regarding speculation of impending interest rate hikes.
He predicts that the base effects in the often unpredictable monthly CPI (Consumer Price Index) indicator will probably reduce annual inflation to 3.6% before the next Reserve Bank of Australia (RBA) board meeting in early August.

Smirk noted, "We forecast that the June Monthly CPI Indicator will show a 0.3% increase for the month, causing the annual rate to decline to 3.6%."

Further insights from Smirk include the June quarter CPI forecast which anticipates a 1.0% quarterly increase and an annual rise of 3.8%. Meanwhile, the Trimmed Mean CPI, which filters out the most volatile price movements, is expected to be 0.9% for the quarter and 4.0% annually.

"By the end of 2024, we project the CPI to ease further to 2.9% annually, influenced by various cost of living measures," added Smirk.

The RBA's attention, according to Smirk, will likely be on the Trimmed Mean CPI because it mitigates most of the unusual fluctuations in cost of living metrics: "Trimmed Mean inflation will reduce to a pace of 3.5% annually by the end of 2024 and 2.8% annually by the end of 2025, signaling a continued moderation in inflation."

In the Minutes released from June’s RBA Board meeting, it was stated that there wasn’t sufficient evidence to alter the Bank’s stance on inflation. Although there were some surprises with the May CPI figures, wage growth appears to have plateaued, risks in the labor market appear biased downwards, and there's significant doubt regarding consumer strength.

Notably, the RBA's comments about the weakening labor market stood out: "The reduction in vacancy rates might suggest that labor market conditions are already weaker than employment trends indicate. Furthermore, the unemployment rate could increase rapidly once it begins to rise, as observed in the past."

Considering the RBA's dual objectives of price stability and full employment, concerns about the labor market shift the probability away from rate hikes.

The results of the June labor force report and the first-quarter CPI data will be crucial in determining not only the potential August rate increase but also the timing of possibly starting a rate cut cycle.

Should the unemployment rate fall lower or if the quarterly Trimmed Mean CPI exceeds 1.0%, it could challenge the RBA's current outlook.

Both Westpac and CBA predict the second quarter's Trimmed Mean CPI will be around 0.9%, which suggests that rates may remain unchanged.

Published:Wednesday, 3rd Jul 2024
Source: Paige Estritori

Share this news item:

Finance News

Market Tumult as Trade Tensions Escalate: ASX Closes Lower Market Tumult as Trade Tensions Escalate: ASX Closes Lower
05 Feb 2025: Paige Estritori

The Australian stock market experienced volatility on Tuesday, closing at a lower point after news broke that trade negotiations between the United States and China had failed, leading both countries to impose new tariffs. - read more
Market Tremors as Trade Tensions Escalate Market Tremors as Trade Tensions Escalate
03 Feb 2025: Paige Estritori

The Australian stock market and currency faced significant setbacks as US trade policies unfolded, signaling a turbulent economic outlook. The recent imposition of tariffs by the Trump administration has sparked concerns of a looming global trade war, with China, Australia's principal trading partner, at the center of the conflict. - read more
House Ownership in Melbourne: A Growing Challenge House Ownership in Melbourne: A Growing Challenge
30 Jan 2025: Paige Estritori

In Melbourne, the dream of owning a standalone house is slipping away for many potential buyers. The disparity between house and unit values has become increasingly pronounced, making detached homes a distant goal for many. According to data from CoreLogic, as of December 2024, typical Melbourne houses cost buyers 51.1%—or $310,202—more than units. - read more
China's AI Surprise Sends Shockwaves Through Global Markets China's AI Surprise Sends Shockwaves Through Global Markets
28 Jan 2025: Paige Estritori

As China continues to sharpen its technological edge, a new development has sent ripples across global financial markets. Investors worldwide are re-evaluating their positions following the debut of DeepSeek, a Chinese tech startup, which has introduced a free, open-source artificial intelligence model that directly challenges OpenAI's ChatGPT. - read more
Capital Cities Face a Shifting Housing Landscape Capital Cities Face a Shifting Housing Landscape
28 Jan 2025: Paige Estritori

The property market across Australia’s capital cities is showing signs of significant change as new data from CoreLogic reveals diverse trends in housing values. Sydney and Melbourne have seen their daily dwelling values index slip by 0.3% and 0.5%, respectively, in the past month. - read more


Truck Loans Articles

The Ultimate Guide to Truck Loan Terms for Commercial Vehicles The Ultimate Guide to Truck Loan Terms for Commercial Vehicles
Getting a truck loan is a significant financial commitment, especially for commercial vehicles. Understanding the terms of your truck loan is crucial for managing your finances effectively and ensuring that you can meet your repayment obligations. - read more
Key Insurance Policies Every Truck Owner Needs Key Insurance Policies Every Truck Owner Needs
Truck insurance plays a critical role in safeguarding your valuable assets. For truck owners, having the right insurance coverage can mean the difference between financial security and devastating loss. - read more
Maximizing Your Fleet Budget: Comparing Used vs. New Truck Costs Maximizing Your Fleet Budget: Comparing Used vs. New Truck Costs
When it comes to expanding a commercial fleet in Australia, the decision between purchasing new or used trucks can have a significant impact on your budget. With this article, we aim to delve into the critical considerations that fleet owners must make in juxtaposing the costs of new verses used trucks, meticulously unraveling the financial layers to guide you towards a choice that aligns with your company's fiscal strategy. - read more
Dealer Negotiations: Smart Tips for Australian Commercial Truck Buyers Dealer Negotiations: Smart Tips for Australian Commercial Truck Buyers
Navigating the used truck market in Australia can be as complex as the rugged terrains these vehicles traverse. With the market growing steadily, the need for savvy bargaining and well-informed purchases has never been more critical. The significance of due diligence escalates when considering the investment at stake and the pivotal role these trucks play in driving businesses forward. - read more
Trucking finance: How leasing can help grow your business Trucking finance: How leasing can help grow your business
Running a successful trucking business in Australia can be a challenge, but with the right financing options, you can grow your business and increase profits. One popular financing option for truckers in Australia is leasing. Leasing allows trucking businesses to acquire vehicles and equipment necessary for their operations without incurring the high costs of outright purchase. - read more
What Every Australian Commercial Vehicle Buyer Should Know About Truck Financing What Every Australian Commercial Vehicle Buyer Should Know About Truck Financing
In the dynamic realm of Australian commerce, the role of reliable transportation cannot be understated. Especially crucial is the ownership of commercial vehicles which serves as the linchpin for logistical and operational efficiency. The pursuit of acquiring such vital assets often leads businesses to explore the world of truck financing—a realm teeming with opportunities and intricacies. - read more
Dealer Negotiations: Smart Tips for Australian Commercial Truck Buyers Dealer Negotiations: Smart Tips for Australian Commercial Truck Buyers
Navigating the used truck market in Australia can be as complex as the rugged terrains these vehicles traverse. With the market growing steadily, the need for savvy bargaining and well-informed purchases has never been more critical. The significance of due diligence escalates when considering the investment at stake and the pivotal role these trucks play in driving businesses forward. - read more
The Ultimate Guide to Truck Loan Terms for Commercial Vehicles The Ultimate Guide to Truck Loan Terms for Commercial Vehicles
Getting a truck loan is a significant financial commitment, especially for commercial vehicles. Understanding the terms of your truck loan is crucial for managing your finances effectively and ensuring that you can meet your repayment obligations. - read more
Avoiding the Potholes: How to Select the Right Truck Loan for Your Fleet Avoiding the Potholes: How to Select the Right Truck Loan for Your Fleet
Selecting the right financing for your fleet can be as crucial to your business's success as the trucks themselves. The journey for the perfect truck loan is fraught with potential pitfalls that can impede your business growth and financial stability. In this introductory section, we will delve into the significance of making informed choices when it comes to truck loans and how they impact your operations. - read more
Trucking finance: How leasing can help grow your business Trucking finance: How leasing can help grow your business
Running a successful trucking business in Australia can be a challenge, but with the right financing options, you can grow your business and increase profits. One popular financing option for truckers in Australia is leasing. Leasing allows trucking businesses to acquire vehicles and equipment necessary for their operations without incurring the high costs of outright purchase. - read more


Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!
Loan Amount:
Postcode:

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase
Index Fund:
A type of mutual fund designed to replicate the performance of a specific market index, such as the S&P 500.