Interest rates look set to climb further as retail sales boom
Monday 16 August 2004
Yet another surprisingly strong economic number today has economists talking up chances of another interest rate hike beyond that widely expected for September 9.
By The LandlordRetail sales grew at a seasonally and inflation adjusted 0.8 per cent in the June quarter confounding economists' predictions of 0.3 per cent and showing no sign of a widely forecast economic slowdown.
Excluding car sales and repairs and petrol sales, sales were even stronger with a 1.5 per cent rise.
Today's data comes hard on the heels of Tuesday's job numbers which showed unemployment had fallen to a 17 year low of 4.0 per cent, better than the forecast 4.3 per cent.
Read More - Opens in a new window
Commenting is closed
Housing confidence has been dealt a hefty blow by the Covid-19 crisis with house price expectations plummeting to new lows.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.