RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Oil Prices Slip as U.S.-Iran Talks Ease Middle East Tensions 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Gold and Silver Prices Climb in Asian Trade as Markets Eye Key U.S. Economic Data 
UK Starting Salaries See Strongest Growth in 18 Months as Hiring Sentiment Improves 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
Australian household spending declined in December as consumers eased back after heavy year-end sales activity, but solid sales volumes continued to highlight why the Reserve Bank of Australia (RBA) recently raised interest rates to curb rising inflation.
New data from the Australian Bureau of Statistics (ABS) showed the Monthly Household Spending Indicator (MHSI) fell by 0.4% in December to A$78.86 billion, following a 1% increase in November and a stronger 1.4% rise in October. On an annual basis, household spending growth slowed to 5%, down from 6.3% previously, signaling some moderation in consumer demand after months of elevated activity.
According to ABS head of business statistics Tom Lay, strong sales events and cultural promotions in October and November encouraged households to bring forward purchases. The pullback in December suggests consumers were adjusting after earlier splurges rather than signaling a sharp deterioration in confidence.
Despite the monthly decline, sales volumes for the December quarter grew by a solid 0.9% from the previous period. Economists estimate this increase will contribute around 0.3 percentage points to Australia’s gross domestic product, reinforcing the view that overall economic momentum remains resilient.
The spending data arrives shortly after the RBA raised its cash rate by 25 basis points to 3.85%. The decision followed a resurgence in inflation after three rate cuts last year. Headline inflation stood at 3.6% last quarter and is forecast to rise to 4.2% by June, well above the RBA’s target range of 2% to 3%. Strong consumer spending, record-high house prices, and relatively easy access to credit have all supported the case for tighter monetary policy.
Market pricing now suggests a 74% chance of another interest rate hike in May, with around 37 basis points of additional tightening expected this year. December data showed spending on goods fell 0.5%, led by declines in clothing, footwear, and household appliances, while services spending slipped 0.3% due to lower transport and health costs.
Looking ahead, economists expect higher interest rates to weigh on household spending in 2026. However, easing inflation and solid wage growth should help prevent a sharp downturn in consumer sentiment, supporting a more balanced outlook for the Australian economy.
