Macroeconomics And The Current Economic Situation

Introduction Macroeconomics plays an important role in business activities of every organizations. Most of business entities were affected by Reserve Bank of Australia’s decision on the cash rate and other macroeconomic policies of the government. Hence it is crucial for every organizations to learn about the current macroeconomic situation and other macroeconomics factors that happening and changing every day. This report then will address and advise the latest current economic situation in Australia. There are many factors that we can discuss and mention in macroeconomics activities, however this report focus on more details about the recent movement GDP growth rate, unemployment rate, and commodity price. Importantly, the forecast about†¦show more content†¦China‘s stock market continues to going down and lead to consumer confidences and production in this country to decrease. Hence, Australia export for coal and other production input will suffer a drop. Moreover, mining investment has also experienced a substantial fall as a result of China’s equity market fall. According to RBA, the interest rate has remained unchanged at low 2.0 per cent in the previous period. This will be welcomed by housing investors. The low interest rate will discourage people to save and put their money in banks, and encourage them to start investing their money in property or other sources. A recent increase in dwelling investment, capital city and retail sale volumes can be explained by this. Housing credit has increase to around 7% and it is continue to be driven by investor. Business financing, on the other side, is growing slowly in June quarter and equivalent to 3% of GDP. Business credit growth has moderated over June quarter following by stronger growth in previous quarters. The cost of intermediated borrowing money for small and large business declined as a result of a decrease in the cash rate. 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