Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Friday, 6 May 2016

SOMP is "nothing short of spectacular"

Goodness me. 

The Reserve Bank's Statement on Monetary Policy (SOMP) for May 2016 has seen inflation forecasts slashed.

Inflation is expected to be in a range of just 1-2 per cent by the end of the year.

You can read about the detail of the quarterly inflation figures that has really got the Reserve Bank in tizz in my post here

Bill Evans of Westpac described the SOMP as "nothing short of spectacular", and he now forecasts another rate cut in August.

This paves the way for another interest rate cut by the August meeting to a cash rate of just 1.50 per cent (this outcome is now priced by futures markets as about a 3 in 4 chance), or possibly even a cut as soon as next month shouldn't be discounted.

Meanwhile Commonwealth Bank sees interest rates being cut to 1.25 per cent, and they have been more right than wrong on such matters in recent times. 

Hang on to your hats!

Source: RBA

It's an interesting dynamic, as growth in the economy is still expected to be quite solid.

Source: RBA

A huge and unexpected boost for housing market demand.