AMP

AMP recently promoted senior economist Diana Mousina to a new role, deputy chief economist, in recognition of her achievements and succession path. Like other economists, Mousina sees a recession on the cards for Australia, although the timeline may be longer than many hope.

Despite increased volatility emanating from the banking sector, tech stocks have been supported by falling bond yields on fears the global economy could slip into recession this year, with big-name companies leading the gains.

The uncertainty now blanketing the global banking sector adds to the risk of recession, but it comes with a silver lining, AMP’s Shane Oliver told The Inside Network’s Growth Symposium: it’s a sign that central banks’ battle against surging inflation may be nearing its end.

Recent buyers of homes are at the greatest risk of negative equity, and the rising interest rate environment increases the likelihood that some homebuyers will default on their loans. With Australia’s large cohort of new homeowners, that could lead to losses for the big banks.

The four majors along with AMP and Macquarie have paid or offered to pay a total of $4.7 million for charging fees for advice services they did not provide and for noncompliant advice, bringing to a close an eight-year review by ASIC and a key chapter of the advice industry shakeup led by the Hayne commission.

A new report from AMP shows homeownership rates in Australia steadily declining from their peak in 1966, as longer lifespans and greater individual freedoms contribute to a changing definition of what wealthy means for Australians.

While avoiding recession is possible, the continuation of restrictive macroeconomic policies for the near term is needed to fight inflation, according to the IMF’s annual economic report card for Australia – and tax reform and stronger housing policies would also help.

Highly anticipated new consumer price data showed the inflation rate in Australia hit its highest level since 1990 in the December quarter. But analysts are mixed on whether inflation will moderate later this year or become more entrenched.

New data shows Australian house prices have dropped 8.4 per cent since their peak in May 2022, the largest decrease on record. While further RBA rate hikes could deepen the downturn, experts say a crash in 2023 is not inevitable.

The cost of living has risen dramatically in 2022, with the Reserve Bank of Australia increasing the cash rate seven times since April and the major banks keeping pace on mortgage rates. But there could be good news on the horizon.