EOFY Wrap Up
Can you believe we’re already mid-year, with another financial year just wrapping up? The property market and employment rates varied significantly from region to region, interest rates remained low, the cash rate mostly remained unchanged, and headline inflation increased in Australia, as it did overseas.
Here’s our quick snapshot of the 16/17 year as it was:
- The cash rate remained unchanged at 1.50% for most of the year.
- The property market varied considerably, with prices both rising and declining across the country. In areas where prices have increased, conditions are expected to ease in the foreseeable future.
- In terms of employment outcomes, this also varied across the country. The unemployment rate remained steady, and there was growth in part-time employment. There was general employment growth over the last few months which is expected to continue, however wage growth remains low.
- Lenders initiated an increase in mortgage rates, especially on those paid on interest-only loans or paid by investors.
- Our national income was boosted due to higher commodity prices, although the prices of iron ore and coal declined over the past couple of months.
- Headline inflation rates across the globe increased, however core inflation remains low.
- Interest rates remained low, with the depreciation of the exchange rate over the past three years helping to transition the economy following the mining investment boom.
- Early in 2017 there was a slowing down of year-end GDP growth, yet economic growth is still expected to gradually increase to just above 3% in the next couple of years.
- A new $5 banknote entered circulation in September, featuring images of Prickly Moses wattle and the Eastern Spinebill. It was the first in a new series of banknotes expected to be rolled out over the coming years.