Economics

Our record US$350 trillion global debt – the equivalent of 3.5x global GDP – has “tentacles across the world”, says Simplicity author Danielle Ecuyer. Tightening financial conditions further will have significant consequences.

The impact of higher interest rates imposed by the Reserve Bank of Australia is being felt, with borrowing capacity taking a dramatic hit across the nation.

China is seeing an acceleration in growth forecasts which will filter through to higher demand for commodities, managers say.

Equity markets are failing to appropriately account for tightening monetary policy. Catching up is not good enough, economists say.

With so much negativity circling, one would assume that the market is likely heading lower or treading water at best. Wrong.

The idea of a soft landing for US rate increases will be music to the ears of investors and central banks.

With annual inflation running at 9.1 per cent, a 41-year high, and a raft of Federal Reserve rate rises to follow, the risk of a hard landing for the US economy has risen sharply. A growing chorus of economists has given up hope that the Fed will be able to engineer a soft landing given its latest predictions.

Headline inflation in Australia has soared to a historic high of 6.1 per cent driven by new dwelling purchases and rising fuel prices.

Strong labour figures will reassure the Reserve Bank of Australia that the economy is match fit to weather further increases in the cash rate. As long as households remain employed, the likelihood of mortgage stress remains extremely low – even if rising debt payments inflation is reducing purchasing power.

Fraudsters are using new and evolved tactics to target a change in consumer behaviour brought on by the pandemic. One Australian bank has taken up the challenge to catch fraudsters at their own game.

Russia’s invasion of Ukraine will continue to have a significant impact on the outlook of the global economy and the human race for decades to come. This is something highlighted by global consultancy firm, McKinsey, in a recent post tracking the 12 major disruptions that are set to change the world as we know it.

Inflation concerns continue to rattle markets with the RBA raising rates by 25bps at their May meeting to 35bps. Uncertainty throughout the month saw April fall by 0.8 percent bringing the total year to date (end of April) returns of the ASX 300 Accumulation Index to +10.2 percent. Ausbil Investment Management have released their Equity…