RBA Warns on Inflation After Holding Key Rate at 3.6%
A house for sale in Sydney’s Caddens suburb last year. Australia’s home prices have posted their strongest monthly gain in nearly two years.
Photographer: Brendon Thorne/BloombergG’day, it’s Karen in Sydney. Here’s everything you need to know this morning…
Today’s must-reads:
• The RBA held its key rate
• Alcoa closing its Kwinana refinery
• Home prices post strong gain
Australia’s central bank left its key interest rate unchanged at 3.6% after three cuts this year. But traders pared bets on a near-term easing as the central bank warned that third-quarter inflation may come in stronger than expected and signaled patience on further interest rate cuts.
Top US aluminum producer Alcoa will permanently shutter its Kwinana alumina refinery in Western Australia, citing negative market conditions and falling ore grades from nearby mines. The decision follows a move last year to curb production.
Home prices posted their strongest monthly gain in nearly two years in Australia. Going forward, an expanded incentive for first-home buyers is predicted to fuel buyer demand — at a time of already tight supply and declining borrowing costs.
The country’s corporate watchdog warned pension funds to strengthen disclosure around private assets and their valuations. Elsewhere in the multi-trillion-dollar industry, Aware Super bought into a $1.3 billion US warehouse deal alongside Goodman Group.