Author: Ryan David Grant

Portfolio Update | IML Market Volatility Update

I am going to introduce market commentary, both personal and from fund managers and economists, to provide an area for your to access some of the key points we see every day. To open we have this interview with Anton Tagliaferro, Investment Director at IML (Investors Mutual Limited).

Mr Tagliaferro addresses some common questions from investors, and the current market volatility.

[youtube=http://www.youtube.com/watch_popup?v=d1CDBDb1z9c]

RBA keeps cash rate at 4.25%

As nine out of ten nutritionists, and economists, predicted, the RBA holds rates today.

The basic story is Australia is doing roughly ok, the USA is improving, some of Europe are up the creek, but will still survive.

For mortgage holders, its same old same old, with credit costs running near their long term average, although the average home-owner has been feeling the brunt of inflation with utilities and living costs surging in the past year (particularly around SE Qld were water was sold off).

RBA Logo

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

Full statement available from RBA Website.

RBA drops cash rate to 4.25%

RDG: Good news for mortgage holders: RBA drops 0.25%. I imagine every mortgage holder will be watching the banks to see what they pass on.

Key points from today’s release include:

  • China has been slowing (RDG: although still kicking our…)
  • European sovereign debt crisis has knocked everyone around
  • Aussie dollar is still high
  • Short-term rates (term deposits etc) have dropped, but credit is still tough for the banks, people are not borrowing
The RBA is aiming to ease into “idle” mode. Interest rates are coming back to longer term averages, term deposits are coming down which I expect will gradual lead people back into investments (which is a good thing).

RBA Logo

STATEMENT BY GLENN STEVENS, GOVERNOR: MONETARY POLICY DECISION

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 4.25 per cent, effective 7 December 2011.

Continue reading RBA drops cash rate to 4.25%

RBA drops cash rate to 4.50%

RDG: Good news for mortgage holders: RBA drops 0.25%. I imagine every mortgage holder will be watching the banks to see what they pass on.

Key points from today’s release include:

  • US has room to grow
  • Borrowing conditions remain tough, credit growth is low.
  • Aussie dollar is high (RDG: really??)
Since inflation has settled down a little, the bank is easing back on the handbrake. That about sums up the general consensus out of the RBA today. I imagine the board minutes will enlighten us a little more in a few weeks. On other best, Melbourne Cup to run shortly…

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 4.5 per cent, effective 2 November 2011.

Continue reading RBA drops cash rate to 4.50%

RBA keeps cash rate at 4.75%

RDG: The RBA holds rates, amid global economic uncertainty. Greece announced it may not make it yesterday, and global stock and credit markets are reeling in fear. Ultimately, Australia can only sit idly by, and hope the world keeps upright enough to keep buying our resources, otherwise we might need to start eating home-grown food again.

I have been commenting to my clients that term deposit rates have been in free fall lately, especially over longer terms, with banks fearful they will be caught out when market rates drop.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

RBA Logo

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

Continue reading RBA keeps cash rate at 4.75%