Market & Economic update - March 2023

File: Economic & Market Update

Duration: 01:39

Date: March 02, 2023

00:01 Economic Review March 2023

00:05 The gloomy prospects for economic growth, both in Australia and overseas, are occupying the minds of investors, businesses and political leaders.

00:14 The Reserve Bank of Australia anticipates a slowing economy this year due to rising interest rates, higher living costs and declining real wealth.

00:23 Australian shares were down by almost 3% during February, while US stocks were down by just over 2% for the month and more than 7% for the past year.

00:32 The early 2023 really appears to be fading as concerns about inflation and cash rate hikes are having an impact on investor sentiment.

00:48 Australia’s inflation rate has improved a little in the most recent figures.

00:53 The monthly CPI indicator was recorded at 7.4% in January, down from 8.4% in December.

01:01 Positive news about Australia’s account surplus increasing in the December quarter, lifted the Australian dollar slightly at the end of February.

01:10 The Australian dollar closed the month at just over US76c, halting a slow decline during February.

01:18 After modest increases over the Christmas-New Year period, consumer sentiment declined 6.9% to 78.5 in February.

01:25 Sentiment is back near the historic lows seen last November, reflecting cost of living pressures and interest rate rises.