Monthly Updates

As expected, the RBA kept the cash rate target at 3.60% in September, but turned a bit more hawkish. Western Australian employment rose by 1.2% over the year to August, while the unemployment rate was 3.8%. Perth home prices rose by 1.6% in September and dwelling approvals fell by 7.3% in August.

The RBA Monetary Policy Board cut the cash rate target by 25bps to 3.60% in August.. Western Australian state final demand rose by 0.5% in Q2, to be up by 2.9% YoY. The wage price index rose by 0.8% in Q2 in Western Australia, to be up by 3.7% YoY, the most of all states. Western Australian employment rose by 2.8k in July, while the unemployment rate was still low at 4.2%.

The RBA Monetary Policy Board unexpectedly left the cash rate target unchanged at 3.85% in July. The Perth CPI rose by 1.9% in Q2, to be up by 2.7% through the year. Western Australian employment rose by 2.6% over the year to June, while the unemployment rate was 4.1%. Western Australian retail sales rose 0.3% in June and were 5.3% higher through the year.

A softer-than-expected Australian CPI indicator for May increased the chance of an RBA cash rate cut on 8 July. Employment rose by 16.5k in May in Western Australia and the unemployment rate fell to 3.9%. Western Australian real state final demand rose 0.2% in Q1 2025 to be up 3.6% YoY. Perth home prices rose by 0.8% in June to be up 7.0% YoY.

The RBA has cut its cash rate target by another 25bps to 3.85% in May. Employment rose by 3.3% over the year to April in Western Australia, by far the most of all the states. Western Australian retail trade picked up by 6.1% YoY, which was also the strongest increase nationwide.

The Perth CPI increased 0.5% in Q1 2025, with annual inflation easing 0.1ppts to 2.8%. Western Australia’s employment rate of 3.6% remained the lowest among the Australian states in March. Retail sales volumes rose 0.6% in Western Australia in Q1.