Inflation - A CRAZY WEEK

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Aussie Real Estate Podcast 11 min 3 speakers 7 chapters transcribed 2 months ago
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What key events made this a 'crazy week' for inflation and real estate?

Craig (Host) 0:02
it's the real estate podcast across every state city and town of australia and welcome to another episode of the real estate podcast available on iheart radio every morning and also on spotify and apple and wherever you get your podcast from it's another saturday yes the weekend is here again the last weekend for july we will never be here again the 30th day And coming up, we are talking with PRD Chief Economist Asti Martiasmo. It's been a crazy, crazy week. So we'll take a look at some of the main talking points. And good luck right across this weekend with any property viewings and negotiations. Fingers crossed that you get the right outcome today. If you are celebrating your birthday, happy birthday.
Craig (Host) 0:54
You are celebrating it today with Hilary Swank. She is turning 47. Of course, she starred in the Clint Eastwood movie Million Dollar Baby, a great film where she played the role of her life. Arnold, I'll be back. Schwarzenegger, he is on the birthday list today. He's turning 74 years old. And from Friends, Lisa Kudrow, she is turning 58.
ANZ Home Loans Station Announcer 1:22
It's your weekend real estate breakfast, a cereal-sized podcast about what's happening in your local backyard every Saturday morning on The Real Estate Podcast. Grab your coffee and switch on your real estate breakfast every weekday morning from 6.30. It's the main centre forecast with propertybuyer.com.au.
Craig (Host) 1:43
And let's check on your weather around Australia.

What short news and weather updates set the scene for this episode?

Craig (Host) 1:45
First, we go to Sydney, expecting a fine day, a high of 15 degrees. Melbourne, also the sunshine for your Saturday morning, expecting a top of 14 degrees. Brisbane, also sunshine with blue skies and 20 degrees. And the odd city out is Perth, expecting some showers today and your high of 17 degrees.
ANZ Home Loans Station Announcer 2:08
We are just as addicted to property as you are. Every weekday morning from 6.30.
Craig (Host) 2:13
Well, there is a lot going on this week. Never a dull moment. Treasurer Jim Chalmers this week saying inflation is expected to reach 7.75% later this year. creating further pain for Australians, which Chalmers backed up by saying that the rate hikes and global slowdown will put pressure on Australia's economic growth, although Treasury is not forecasting a recession. So let's bring in PRD chief economist Asti Mariasmo. And great to have you back, Asti.
Asti Mardiasmo 2:50
Hello, good morning. How are you?
Craig (Host) 2:52
Yeah, I'm pretty good.

How did Treasurer Jim Chalmers' inflation projection change the conversation?

Craig (Host) 2:54
Saturday morning, so I guess the weekend is here. At least we can sort of relax for a couple of days, eh? With what has been a rather hectic and busy week.
Asti Mardiasmo 3:03
Definitely. Look, I think it's all been exacerbated by the fact that Parliament is sitting as well this week. in terms of what Parliament is thinking about doing to tackle cost of living, to tackle climate change, a lot of the things that we're all talking about right now, you know, inflation, everything. And like I said, with Parliament sitting, you just never know what might be introduced next week.
Yeah, exactly. What is happening next week? Well, maybe a little bit of a hint, it might include a bit of a rise, do you think? Yeah.
Asti Mardiasmo 3:35
Look, Tuesday is definitely here. We call it in my office anyway, in the research team, we call it cash rate party day. It probably sounds wrong to say that it's party, but it's more sort of like all of us literally refreshing F5 at 2.30 p.m. on a Tuesday to see what the RBA is going to be doing or what it is that they've decided.

Why is the upcoming RBA decision described as a 'cash rate party day'?

Asti Mardiasmo 3:57
And so there is definitely that nail biting kind of, you know, are we going to have a breather? Who knows? Maybe the weekend breather might, you know, go a little bit longer if they're going to give us a breather of like a stable cash rate or if it is going to go up, then whether it is going to be 25 or 50 or 75 basis points. I think a 75 basis points is going to be quite extreme. And I will say that it will have a very high ripple shock event throughout all of our people and our economy if that does happen.
Craig (Host) 4:31
I think you are an optimist. Absolutely. If you think that there's no cash rate rise coming on Tuesday. But I think you're right. I think that there could be, there's a possibility. I think Without doubt, it's going to be another 50 basis points, but there is a strong possibility that it could be 75, without a doubt in my mind.

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