Tag: economy

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).

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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%

RBA keeps cash rate at 4.75%

RDG: The RBA holds rates, interesting that banks are having a tougher time with credit markets, and our economy is turning into a three speed one, mining flat-out, some services, ok, everything else: hurting. Today’s RBA statement seems like a never-ending story of “ifs”. If the global economy does ok, we will do ok, if the coal mines get cleaned up, we will do better. I will post some more commentary on the housing market in the near future, this has been a good area to follow both media and Government “statements”.

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%

RBA keeps cash rate at 4.75%

RDG’s comments: Inflation is still a concern, as prices rise everywhere and people are feeling the pinch. Weather has been the biggest headwind to rates increasing, with the fallout from floods and cyclones having the biggest impact locally. Weather-affected prices are expected to come back down later in the year. Most economists are pegging a rise in the next two months (for what that is worth).

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%

RBA keeps cash rate at 4.75%

RDG’s comments: The RBA is watching inflation, our labour market demand is strong, pushing wages up, despite hits from disasters we are still riding the wave to higher consumer prices, and thus, higher interest rates.

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%