Australia’s Stimulus funds ’should flow into economy quickly’

Economists say the early impact of the Federal Government’s $42 billion stimulus package will be noticed when the payments flow from next month.

The stimulus plan made it through the Senate yesterday after a week of wrangling in Federal Parliament.

 

The cash handouts will start to roll from next month, beginning with the single income and back to school bonuses from March 11. Read the rest »

Housing finance shows encouraging signs

The Australian Bureau of Statistics (ABS) data released today shows the number of new home loans for owner occupiers increased by 6.4 per cent in December compared with November 2008.

The data showed an increase in loan commitments to purchase new dwellings (15.1 per cent), and to construct new dwellings (9.9 per cent). Read the rest »

Australian house prices down at the end of 08

Demand for houses fell dramatically in the final quarter of last year, predictiong an  interest rate cut tomorrow more likely, experts say.

The official index of capital city house prices fell 0.8 per cent in the December quarter, the Australian Bureau of Statistics (ABS) said.

There were falls across all capital cities except Adelaide, Canberra and Darwin.

In the year to December, the official index decreased 3.3 per cent.

The drop in house prices makes a 100 basis point interest rate cut by the Reserve Bank of Australia (RBA) at its meeting tomorrow a strong possibility, the ABC’s business editor, Peter Ryan, says.

“The market is now tipping a one percentage point cut, which would take the official rate to 3.25 per cent,” he told The World Today.

“That would make a 45-year low, when rates were at 3.18 per cent in 1964.” Read the rest »