Despite a difficult start to 2022, with flooding and ongoing Omicron impacts, underlying momentum in the economy remains strong

A forecast of a further six 25bp rises over the rest of the year will add to the pressure facing the RBA Board to raise Australia’s cash rate sooner rather than later.

KPMG anticipates adjusting the cash rate upwards is unlikely to be in play until Q3, probably the August 2022 meeting at the earliest.

Retail turnover was surprisingly strong in January, with spending rising 1.8 percent month on month despite the spread of Omicron through most states.

Sarah Hunter, KPMG Senior Economist, responds to ABS monthly wage data

Despite Omicron surging through the community during the summer holiday period Australia’s unemployment rate was maintained at a near-record low of 4.2 percent.

With the spotlight firmly placed on the big “E” in ESG it comes as no surprise that the link between executive pay and climate-related considerations is front-of-mind

The speech reiterated the Australian economy well outperformed expectations across a range of indicators

QE program to end and strong words by the Governor about keeping interest rates unchanged until inflation is sustainably in its target range, but KPMG still consider the start of tightening cycle is likely to commence towards the end of 2022.