#reservebank

English – The Conversation | Australia’s economy slows as households tighten their belts, while AI investment surges by Stella Huangfu, Associate Professor, School of Economics, University of Sydney AI generated summary, Read the full article for complete information. Australia’s economy grew only 0.3 % in the first quarter of 2026, a slowdown from the 0.9 % pace at the end of 2025, while GDP per‑person fell 0.1 %—a sign that households are not feeling richer despite overall growth. Higher fuel and fertiliser prices linked to the Middle‑East conflict, the end of government fuel discounts, and rising energy costs pushed households to spend more on essentials and cut back on discretionary items. The strongest area was private investment, especially in machinery, data‑centre infrastructure and artificial‑intelligence projects in New South Wales and Victoria, whereas net trade dragged growth – exports fell due to coal and iron‑ore disruptions while imports rose, partly from data‑processing equipment. Government spending fell and mining output declined after Cyclone Koji, while consumer‑facing services such as retail, accommodation, food, arts and recreation remained weak. The fall in per‑capita GDP raises the risk of a “per‑person recession” if the trend continues into the June quarter, and it signals that higher interest rates are already weighing on spending; consequently the Reserve Bank is expected to hold rates at its June meeting, balancing lingering inflation pressures against an increasingly split‑economy where digital‑tech sectors expand while many consumer sectors stay under strain. Read more: https://theconversation.com/australias-economy-slows-as-households-tighten-their-belts-while-ai-investment-surges-284423 #Australia #ReserveBank #MiddleEast #AI #Datacentre

English – The Conversation | Almost 3 million workers will get a 4.75% pay rise in July. But wages can’t catch up with inflation by John Buchanan, Professor in Working Life, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney AI generated summary, Read the full article for complete information. Around 2.8 million of Australia’s lowest‑paid workers will receive a 4.75 % award‑wage increase on 1 July 2026, with the roughly 100 000 lowest‑paid employees – many women in part‑time, casual roles in hospitality, health, retail and administration – getting an almost 6 % rise that lifts the national minimum wage to $26.44 an hour ($1 004.90 a week). Despite the boost, the Fair Work Commission’s expert panel warned that real earnings are still falling, noting a 5.9 % decline in purchasing power over the past five years as inflation has outpaced wage growth since June 2021. The panel deemed a larger real‑wage increase “impractical” amid ongoing price shocks from the Middle‑East conflict and forecasted inflation of up to 7.25 % if oil prices surge, leaving workers’ buying power under pressure and highlighting the need for future, gender‑focused wage adjustments. Read more: https://theconversation.com/almost-3-million-workers-will-get-a-4-75-pay-rise-in-july-but-wages-cant-catch-up-with-inflation-284193 #FairWork #Treasury #ReserveBank #MiddleEast #Australia

9News | Banks were quick to pass on rate hikes – just not for savers by 9News AI generated summary, Read the full article for complete information. After the Reserve Bank of Australia lifted the cash‑rate target to 4.35 %, the four major banks quickly announced higher borrowing costs but have been slower to pass the increase on to savers. So far only Westpac has confirmed a rise, offering a 5.75 % ongoing rate on its Spend & Save account for customers aged 18‑34 who meet monthly bonus conditions, while its base rate remains unchanged for others. AMP already provides a “no‑strings‑attached” rate of 5.10 %, and Macquarie will raise its condition‑free account to 5.00 % from 22 May. The Commonwealth Bank, NAB and ANZ say their savings rates are under review and, based on past behaviour, are likely to pass on only part of the hike or impose strict eligibility criteria. Analysts note that after the March increase, bonus‑linked rates rose modestly (about 0.28 pp) while base rates barely moved, and that delaying or limiting pass‑throughs helps the banks protect profit margins—profits that recently hit a collective $43 billion pre‑tax, placing them among Australia’s most lucrative companies. Read more: https://www.9news.com.au/national/major-banks-hold-off-passing-interest-rate-hike-onto-savers/95de7946-5c86-403e-8108-d555dadb5b34 #ReserveBank #Westpac #AMP #MacquarieBank #CommonwealthBank #NAB #ANZ #RioTinto #BHP #national

9News | Big four making bank off Aussie dream of home ownership by 9News AI generated summary, Read the full article for complete information. New research by the Australia Institute reveals that Australia’s four major banks – CBA, NAB, Westpac and ANZ – earn an average of $228,900 in profit over the 30‑year life of a typical $736,000 home loan, with owner‑occupier mortgages accounting for just 22.7 % of their loan book but delivering 39.3 % of profits, amounting to $16.9 billion of the banks’ $43 billion pre‑tax earnings last year. The Institute’s co‑CEO Richard Denniss called these figures “obscene” as borrowers face a third consecutive interest‑rate rise, now at 4.35 %, which he warned could push the economy toward recession and force the Reserve Bank of Australia to reverse policy dramatically. Read more: https://www.9news.com.au/national/big-four-banks-how-much-they-make-off-home-loans/dbbbe7b8-4935-4908-b346-524fa3efca6b #RichardDenniss #AustraliaInstitute #ReserveBank #MattGrudnoff

Times of India | 100% FDI allowed in insurance sector under automatic route, inflows for LIC capped at 20% AI generated summary, Read the full article for complete information. The Indian government announced that foreign direct investment (FDI) in insurance companies can now be up to 100 % of paid‑up equity under the automatic route, subject to approval by the Insurance Regulatory and Development Authority of India (IRDAI). This change, aligned with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, lifts the previous ceiling of 74 % and follows parliamentary approval of the Sabka Bima Sabki Raksha Bill. While all insurers may receive full foreign ownership, Life Insurance Corporation of India (LIC) remains restricted to a maximum of 20 % foreign investment. The new rules also extend the 100 % FDI limit to insurance intermediaries, and require key top‑level positions (chairperson, managing director or CEO) to be held by resident Indian citizens, with any ownership changes complying with RBI pricing rules under FEMA. Read more: https://timesofindia.indiatimes.com/business/india-business/100-fdi-allowed-in-insurance-sector-under-automatic-route-inflows-for-lic-capped-at-20/articleshow/130716877.cms #IRDAI #LIC #DPIIT #ReserveBank #SabkaBima #Indiangovernment #Parliament #