No reason for the RBA to wait on cutting: Pete Wargent

No reason for the RBA to wait on cutting: Pete Wargent
Pete WargentJune 19, 2019

GUEST OBSERVER

I've very much enjoyed reading James Glynn in my Wall Street Journal app this year, as one of the most informed commentators on Aussie monetary policy.

Always straight to the point and almost unerringly accurate. 
 
Yesterday in Glynn's take he argued that there's no point in the Reserve Bank delaying action, calling for another rate cut in July to an official cash rate of 1 per cent, followed by a possible further salvo of cuts towards the end of the year. 
 
 
Today's skilled job advertisements figures did little to dispel the notion, with another decline in May taking the trend year-on-year decline out to 6 per cent. 
 
 
There were year-on-year declines across each of the three main states, and in 7 of the 8 major occupational groups. 
 
There's been some growth in white collar and professionals vacancies, but tellingly the construction and trades ads have dropped away sharply. 
 
Thus the strong jobs recovery rather looks set to die on its, erm, feet.

As the Aussie dollar scrabbles around at decade lows, benchmark iron ore spot prices have ballooned to multi-year highs across all the major grades.


I wanna see the receipts!
 
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger 

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Editor's Picks

City Beat January 2025: Sydney property market cooldown slows as new apartment pipeline ramps up
26 Vista Street, Surfers Paradise apartment development, hits 70 per cent sold
Latent Defects Insurance 101: What is the Technical Inspection Service (TIS) Program
City Beat January 2025: Gold Coast property values continue to grow as off the plan enquiries hit near 12-month high
Live parkside in Melbourne for under $500,000