Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The impact of the Reserve Bank of Australia's rate hikes has yet to make a major dent in building approvals, with September approvals only partly retracing August's big increase, according to the Australian Bureau of Statistics.
Total dwelling units approved fell 5.8% m/m to 16,455, delivering a year-on-year decline of 13%. But September's fall only partially reversed a revised 23.1% m/m increase in August. Approvals for private sector houses fell 7.8% m/m, while the value of total building approvals fell 6.9% in September, following a 19.5% rise in August.
Getting clear line of sight on building has been muddied by not only the RBA's rate hikes but also supply constraints that have limited construction activity. Bad weather on Australia's east coast has also weighed on activity.
The RBA raised interest rates 25bp to 2.85% on Nov 1 as it raised its forecast for peak inflation to "around" 8% by the end of the year. (See MNI RBA WATCH: Hikes 25bp, To Miss Inflation Target Until 2025). The Bank is expected to hike again by 25bp at its December meeting. (MNI RBA REVIEW - November 2022; Balancing Inflation & Growth)
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.