As Amazon crank up their Prime Day promotions, JB Hi Fi has also jumped into the discount promotion market in an effort to soak up some of the money from the  Federal Governments cash splash a move that could lead to a new interest rate rise according to observers.

JB Hi Fi management who are well known for their astute decision has seen their share value climb 4.6% during the past month with the owners of The Good Guys, launching its second storewide “perks” deal this month, a lift on the discounting offered in July.

“While this may appear to be indicative of an elevated level of discounting, we believe this is merely JB Hi-Fi reorganising their promotional calendar to take advantage of the 1 July stage three tax cuts,” said Citi analyst Adrian Lemme.

“We believe this sets up JB Hi-Fi to produce a solid trading update at the full year result in August.”

The business is set to benefit from the launch of the new Samsung Galaxy Flip and Fold 6 and the roll out of new AI PCs from brands such as Lenovo and HP.

Recently JB H-Fi addressed the ACCC’s recent actions against The Good Guys (See story here) with an ASX announcement.

The company claims it ‘takes its compliance with the law very seriously and has a comprehensive compliance program in place’.

In what could be bad news for mortgage owners today is the start of Labor’s so-called cost of living relief, with stage three tax cuts set to see Labor’s ‘Splash the cash’ program result in money pouring into the economy a move that several analysts are tipping could lead to a Reserve Bank rate rise.

Key is the tax cuts 13.6m Australian taxpayers will receive from 2024–25 onwards, with a person on the average wage of around $73,000 to get a tax cut of $1504.

JB Hi Fi is set to report next month when we will see the results for the last quarter of the last financial years and the impact of the tax handouts.