Weekly Update: 11 April 2025

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Highlights this week:

• US tariff uncertainty dominated much of the week’s political discussions, with the 90 day reprieve from the Trump Administration overnight on Wednesday bringing relief to financial markets.

Quote of the week:
“First, we’re not currently seeing the same degree of impact as previous market events like in 2008 for example. And second, the Australian financial system is strong and well placed to absorb shocks from abroad.”

– Michele Bullock, RBA Governor. Speech at Chief Executive Women Annual Dinner, 10 April 2025

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Parliamentary Update:

• The federal election campaign’s second week concluded, with several debates taking place between Party Leaders, Treasury and Energy spokespeople.
• Major party campaign launches are both set to take place this coming Sunday. This may be the last strategic opportunity to announce new election policies before Easter and early voting begins (22 April).
• Treasurer Jim Chalmers convened a meeting of the Council of Financial Regulators (CFR) on Wednesday to discuss the fallout of the US Administration’s tariffs.
• The CFR released a statement following the meeting noting that:
  • Council members are closely monitoring developments;
  • There had been an increase in global financial market volatility, but that the Australian financial system was strong and resilient;
  • Australian banks have maintained strong levels of capital and liquidity.

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Policy Update:

• The ABA met with:
  • AUSTRAC to discuss implementation timing of AML/CTF reforms.
  • Master Builders Australia to discuss prefabricated housing.
• The ABA attended the Northern Territory eConveyancing implementation working group.
• The Australian Communications and Media Authority (ACMA) is consulting on the Proposed rules and operation of SMS sender ID register, which will set the rules for the mandatory SMS Sender ID register. The ABA is working with members to develop a response, through the Scams Working Group. The submission is due on 28 April.

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Regulatory Update:

• The RBA released a research paper on Boundedly Rational Expectations and the Optimality of Flexible Average Inflation Targeting.
• The Council of Financial Regulators published their April 2025 Statement.
• Michele Bullock, Governor of the RBA, gave a speech on Women’s Economic Empowerment in Australia at the Chief Executive Women Annual Dinner.

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Economic Update:

Monthly ADI statistics continue to show a growth in household deposits with an increase of 0.4% in February to sit at $1.59 trillion. This is up 8.6% on February last year and is in line with the average prior year period increase since the first rate rise in May 2022

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Coming up next week:

• Politics:
  • Election campaign continues into Week 3.
• Data:
  • 17/04 – Labour Force, Australia

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Upcoming Submissions:

Published submissions

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Upcoming Events:

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Selected Media:

• Bloomberg – Australian Regulators Are Closely Monitoring Market Volatility

• AFR – Why Australia’s top modeller says we are not headed for recession
• AFR – Cybercriminals impersonated super executives in week of mass breach
• AFR – Armaguard, banks seek independent price-setter for cash delivery
• News.com.au – Major mortgage hurdle lowered for HECS debtors
• The Guardian – Bullock plays down hopes of outsized May rate cut as RBA warily eyes Trump trade war

Warm regards,
The ABA Team

Weekly Update