by Chris Becker
It’s my favourite time of the month – checking out the latest content from the RBA Chart Pack! Let’s dive in….
First it’s all about the GDP’s, all in the toilet for the biggest economies as COVID-19 bites:
Meanwhile in Australia, the trend has been down for years:
And in the last quarter before the virus hit, it was all about government spending to keep things moving:
The CPI print is trending up again after a long term downtrend:
But the real driver of inflation – house prices – is slowly, very slowly rolling over as household debt continues to climb:
Credit growth has stabilised for owner occupiers but investment (sic) remains stuck in negative “growth” territory:
Meanwhile business investment remains in the toilet as a share of GDP:
In the labour market, COVID-19 has had a devastating effect:
With the real rate of unemployment still well understated and more than 12% of Australians unable to work:
Luckily commodity prices are still elevated – I guess?
Keeping our terms of trade equally elevated and keeping standards of living somewhat stable:
All because of that magic dirt – iron ore…While coal exports flatline:
Unfortunately all going to the wrong place:
On to real things like money…. Negative rates anyone?
While the spread between Oz and US government bond yields pips back into the positive zone, keeping the currency elevated:
Back to houses – with interest rates plummeting:
But banks remains well profitable thank you very much:
And margins remain tighter than a you know what:
Housing loans are non-performing and rising, even as APRA provides three monkey policy for the banks:
You can find the full Chart Pack here.
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