Thu, 6th Mar 2025

In the Weekly Finance News Wrap, Paige Estritori discussed the Reserve Bank of Australia's decision to cut the cash rate from 4.35% to 4.10%. Despite concerns about inflation, Deputy Governor Andrew Hauser defended the move, emphasizing the bank's reliance on data-driven strategies. The cut led to growth in the Australian housing market and a rise in nation-wide property listings, especially in Sydney and Melbourne. Prime Minister Anthony Albanese stated he has not engaged in negative gearing since his tenure began. Moving to the cost-of-living topic, former RBA Governor Philip Lowe suggested that a decline in productivity, not high interest rates, was the main challenge. He called for reforms to increase productivity as a means of improving living standards. Current RBA Governor, Michele Bullock, voiced a similar sentiment, while Federal Treasurer Jim Chalmers announced a $900 million initiative to boost national productivity.