October Observations
Interest Rate Outlook
The RBA again kept rates on hold at 4.10% at their October meeting. Persistent inflation, driven by supply side issues in energy and fuel, is starting to get people thinking rates could potentially go up once or twice before being held for longer.
Inflation Outlook
The monthly CPI indicator annual movement increased to 5.2% in August, up from 4.9%. This increase was in line with expectations given the period reflects insurance renewals, energy price increases and elevated fuel levels. The annual indicator which excludes volatile items dropped to 5.5% in August from 5.8% in July.
It appears the fight to get inflation to get to the target band of 2-3% is proving difficult.
Other notable items
- International Monetary Fund analysis showed households in Australia devoted a greater share of their income to mortgage repayments than in any other advanced economy
- Country Garden (Chinese Developer) warns they may not be able to meet their debt repayments
Upcoming Lodgement Dates for October:
- 28 October – September Quarter BAS is due if not using a tax agent or electronic filing service
- 28 October – Super contributions for the September Quarter to be received by this date
