1. Brace for another interest rate rise tomorrow

The RBA meets tomorrow and economists expect another hike in the cash rate. A 0.25% increase is tipped, which will take the cash rate to 3.1%, which is a huge jump from 0.1% only seven months ago. However, some think a pause in the rises is possible tomorrow and these economists think there are only two more rises ahead with the cash rate topping out at 3.6% rather than the former view of 4.1%. Let’s hope these forecasters are right.

2. Coal prices are bad for energy bills but great for the Budget

The Coronavirus and its lockdowns forced the Budget into a dramatic deficit of $180 billion in 2020 and $56 billion last year. But this year, the booming coal price will deliver about $70 billion in taxes and could bring the deficit down to $23 billion this financial year. In the last Budget, Treasurer Chalmers used a coal price of $US60 a tonne but coal futures are at, wait for it, $US390, thanks to Vladimir Putin’s war.

3. Power bill shocks not expected to end soon

Even if the Federal Government gets its gas price cap plan off the ground, we won’t see lower energy bills until mid-2023. The Australian says: “Ahead of a national cabinet showdown on Wednesday, premiers Annastacia Palaszczuk and Dominic Perrottet are maintaining their positions to reject the federal government’s coal price cap proposal unless the commonwealth stumps up compensation for generators and producers.

4. Shock! Horror! No champers for Xmas!

Inflation is falling and the stock market looks poised for a good Santa Claus rally but celebrating in style could have its problems with the SMH reporting that “Australia is in the midst of a mild shortage of popular champagne brands such as Moet, Veuve Clicquot and Bollinger, retailers cope with a supply drought. Explosive growth in the global demand for champagne, as well as supply chain and logistics issues, are contributing to the shortage, which has prompted experts to suggest bubbly drinkers try lesser-known varieties that are still on store shelves.”

5. Anti-lockdown protests working in China

Bloomberg reports that “more Chinese provincial capitals relaxed COVID-19 restrictions as authorities expanded a policy shift towards reopening the economy after anti-lockdown protests erupted across the country.” First-tier cities including Beijing, Shenzhen and Guangzhou have partially eased such curbs in the past few days and regional centers are now easing restrictions. China’s zero-Covid policy is bad for inflation, world economic growth and the stock market and these easing of lockdown measures will help hare