More rate cuts on the horizon? + The best bargain hunting secrets

Hi everyone,

I’m writing this newsletter from Rawnsley Park in the heart of the Flinders Ranges in South Australia. We're coming to the end of a wonderful week with the group of friends I was telling you about last week.

As chairman of The South Australian Tourism Commission, I am a bit biased but all our friends agree the state has so much to offer as a tourist destination. Up in the Flinders Ranges itself, Wilpena Pound is just extraordinary, Lake Eyre is going through a once in 30-year flood and the Painted Hills is a magnificent area which I had never heard of before.

But Nilpena Ediacara National Park has to be seen to be believed. Access is strictly limited with only 2000 tourists going through last year. It is the most pristine archaeological dig in the world which shows how life transitioned from a single cell to a multi-cell form. The audio visual presentation shown at the start of the visit brings to life the fossils you get to later see in the field.

It is amazing and I’d recommend it to anyone. But while I’ve been galavanting around South Australia, there has been a lot happening with the economy which is impacting your finances.

In this newsletter:

• A rate cut … but how many more are to come?

• Unemployment drops, and the RBA isn’t happy.

• Subscription traps: How to avoid a stay at the ‘Hotel California’.

• Aussies are spending, but only if we can nab a bargain (plus, how the best bargain hunters are doing it).

Interest rate cut (as expected) - but how many more are on the horizon?

To no one’s surprise, the Reserve Bank cut rates on Tuesday by 0.25 per cent to 3.6 per cent. It was a unanimous decision by the RBA directors after they were split on the decision to hold rates at the previous board meeting.

The June quarter CPI figure clinched their decision - inflation continued to ease within the RBA’s target band.

RBA Governor, Michele Bullock, noted in the RBA press conference that there was no discussion of a larger rate cut.

The statement from the Board - which is always attached to an interest rate decision - said:

“Underlying inflation will continue to moderate to around the midpoint of the 2-3 per cent range, with the cash rate assumed to follow a gradual easing path”.

That language indicates more rate cuts are to come. But the big question is how many?

The financial markets are predicting that it’s unlikely there will be another cut at the September board meeting, although the November meeting could see rates fall further.

Governor Bullock noted that without forecasts of additional easing, inflation would be lower and the labour market weaker. In other words, the RBA would be missing both of its targets without incorporating additional easing into its forecasts.

But all eyes are now on how the labour market performs with the RBA statement saying it’s a “little tight, although has eased further in recent months”.

So the RBA won’t be happy with this week’s unemployment figures …

After rising to a three-year high in June, the unemployment rate fell back down to 4.2 per cent in July. It shows the labour market remains tight.

This is something that RBA Governor, Michele Bullock, doesn’t want to happen - and it it reinforces expectations that there will be no rate cut in September.

The RBA is waiting for a rise in unemployment to ease pressure on wage inflation.

Data from the Australian Bureau of Statistics (ABS) showed that net employment increased by 24,500 positions in July, slightly below economists’ expectations of a 25,000 gain.

Full-time employment rose a whopping 60,500 - the largest monthly increase since February 2024. However, employers shed 35,900 part-time jobs in July after hiring 37,600 workers in June.

Subscription traps - and why you should never auto-renew anything

How many times have you gone to cancel a subscription or a 'free' 30 day trial - only to find it's not as easy as it should be?

Signing up was a breeze, but opting out can feel like you are in a maze - one where you can’t find the ‘exit’.

You are not alone.

According to a report by Consumer Policy Research Centre (CPRC):

• 48 per cent of Australians have spent more time than expected trying to cancel a subscription.

• One in three felt pressured into keeping a subscription.

• 75 per cent had a negative experience when attempting to cancel.

• And 1 in 10 simply gave up and kept paying.

Welcome to Hotel California

These kinds of subscriptions - where signing up is a cinch but getting out is a difficult or time-consuming process - have been dubbed “Hotel California traps”. As the Eagles song puts it: “You can check out any time you like, but you can never leave...”

Funny name. Not so funny in practice.

Whether it’s hiding the ‘cancel subscription’ button, breaking links so you can’t cancel, forcing customers to call a help line and wait on hold - this kind of “retention strategy” is just bad business.

Software companies, mobile apps, and streaming services are especially notorious for luring people in with “free” trials, then auto-renewing into costly plans - often with little to no warning.

Insurance companies are also long-time offenders too. It’s astounding to me that nearly a third of Australians let their insurance auto-renew, often absorbing steep premium hikes, while new customers are offered better deals. As I always say, loyalty never pays but comparing and shopping around does.

Recently, dating app eHarmony was accused of misleading users with confusing cancellation options, prompting the Australian Competition and Consumer Commission (ACCC) to take legal action.

Good to see. But as consumers we also need to be part of the change.

Because the truth is, companies count on us being too busy, distracted, or disorganised to cancel. And it works. It’s not until we check our credit card or notice a shrinking bank balance, that we realise we’ve been taken for a ride.

So, how can you avoid visiting Hotel California? It’s easy.

Never auto-renew - anything. It’s a slippery slope.

But if you do sign up for a free trial with an auto-renew or a subscription, make sure you do the following:

A few good habits:

• Check the website or app to see how you’d cancel. If it’s hard to find, that’s a red flag. Don’t sign up.

• Cancel well before the trial or renewal date. Set a calendar reminder so it doesn’t sneak up on you.

• Keep proof of cancellation. Take screenshots, save confirmation emails - just in case you need to dispute a charge.

• Turn off auto-renew on your phone. Uninstalling an app doesn’t automatically cancel the subscription - you have to do that manually.

  • For Android/Google Play: Open Google Play > Tap your profile > Payments & Subscriptions > Subscriptions > Select and cancel.

  • For iOS (iPhone/iPad): Go to Settings > Tap your name > Subscriptions > Select and cancel.

Here’s the irony: the same CPRC study found that 90 per cent of Australians would be more likely to buy from the same company again if cancelling was quick and easy.

In other words, companies don’t need to trap us to retain us - but they do need to treat us fairly and provide a good product or service that we are happy to pay for. It’s that simple.

Aussies are spending big online – but only if they can nab a bargain

Australian consumers spent an astonishing $19.2 billion online in the three months prior to the EOFY, according to data from Australia Post.

While the surge signals renewed consumer confidence - thanks to easing inflation and the anticipation of future rate relief at the time - it also reveals something else:

We’re a nation of bargain hunters. And we’re getting seriously good at it.

The rise of savvy online shoppers

The Australia Post eCommerce report shows 7.9 million Australians shopped online during the measured quarter - that’s a 15 per cent increase year-on-year.

As the below graph shows, millennials led the charge, spending $6.9 billion online, followed by Gen X at $5.3 billion and Gen Z with $3.4 billion.

The data  captures a period that included the Reserve Bank of Australia’s (RBA) decision to hold rates in April, the 0.25 per cent cut in May, and the high hopes of further relief in July (despite the hold, markets had largely predicted a cut). And let’s not forget the EOFY sales …

The internet was buzzing with Aussies out to nab a deal.

But here’s the interesting part: while overall online spend is up, the average online basket size actually fell by 1.6%.

That tells us something … deal-chasing and consumer saving isn’t just a temporary trend. It’s a way of life now for Australians navigating a persistent cost-of-living crunch.

Here’s how the most savvy among us are doing it - and doing it well.

8 things online bargain hunters know

1. How to find deals

Hardcore online bargain hunters don’t just wait for sales, they actively seek them out.

They join websites like OzBargain - a community-driven site for deals, and use GetPrice and Couponic Australia - which lists retailer’s discount codes and sales promos to save.

2. The best comparison engines

Gone are the days of hopping from store to store to compare product prices. Today’s online shoppers use sites like PriceMe, GetPrice and Price Hipster, which track price drops and send alerts. Even a quick Google search can show if there’s a better deal elsewhere.

They are also using platforms like Compare the Market and iSelect to compare prices across insurance, utilities, and other household services.

And, they know which online retailers offer price matching. If they don’t, they ask just in case.

3. When the sales are on

Bargain hunters plan ahead and wait for the big online sales to pounce on before purchasing.

They have just saved a tonne at the EOFY sales in June. This year’s Black Friday (28 November) and Cyber Monday (1 December) are firmly locked into their calendars, and of course, Boxing Day deals will be another shopping opportunity in the new year..

They resist making big purchases outside of sales season.

4. How to save on shipping

Bargain hunters know that shipping can eat into their saving, so they:

• Use flat-rate or free shipping offers.

• Choose local retailers for cheaper delivery or click-and-collect.

• Consolidate purchases into one order.

• Join loyalty or membership programs that include free shipping.

5. Keep a separate email address

Not all marketing emails are spam. Savvy shoppers know that signing up for retailer newsletters means they’lll be first to know about sales and promotions.

So they don’t get bombarded, though, many have a separate email address they apply to sign ups and memberships so they never miss a deal, but keep their primary inbox tidy.

They also follow retailers on social media to learn about flash sales and promos.

6. The best second-hand marketplaces

Buying second-hand can mean major savings - and it’s better for the planet.

Savvy shoppers trawl buy-swap-sell Facebook groups and marketplaces like eBay and Gumtree for refurbished tech and pre-loved goods.

7 To be strategic with their cart

Smart shoppers also know that if they leave items in their online cart and wait a day or two, retailers will sometimes try to entice them to “come back” - with an offer or a discount code.

That said, they also know when to walk away. A real bargain isn’t just a low price - it’s value for money. Just because it’s on sale, doesn’t mean it’s worth your hard-earned money, the shipping cost or your time in researching a better deal.

8. It’s all about mindset

The best bargain hunters approach every purchase with a value-first mindset.

They question prices, resist brand loyalty, compare relentlessly, and never assume the first offer is the best offer. They weigh up things like free shipping vs base price - and their growing savings prove their thinking is on the money.

Happy bargain hunting, everyone!