RBA Raises Rates From Record Low 0.10% by 25 bps to 0.35%

The Reserve Bank of Australia raised interest rates off an all-time low on Tuesday to 0.35% higher than the widely expected 15 bps after the April monthly statement no longer featured the phrase “the board is prepared to be patient”. This indicated the rate cycle has accelerated. This is the first-rate hike by the RBA since 2010. The Australian dollar popped 0.7090 to 0.7140 on the decision, while the ASX 200 dropped on the announcement. RBA patience coming to an … Continue reading “RBA Raises Rates From Record Low 0.10% by 25 bps to 0.35%”

RBA Patience Running Out with Inflation, Keeps Rates at Record Low 0.10% Ahead of Election

The Reserve Bank of Australia held interest rates at an all-time low on Tuesday to just 0.1% as widely expected. However, a rate rise may become sooner rather than later, the April monthly statement no longer features the phrase “the board is prepared to be patient”, which many see as an indicator the rate cycle has accelerated. The Australian dollar popped above 76 US cents, while the ASX 200 dropped sharply on the announcement. RBA patience coming to an end … Continue reading “RBA Patience Running Out with Inflation, Keeps Rates at Record Low 0.10% Ahead of Election”

Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected, Will Not Reinvest QE Proceeds

The Reserve Bank of New Zealand raised its Official Cash Rate by 25 bps to 1.00%, as expected. The central bank will not reinvest QE proceeds and bond holdings will begin decreasing by NZD5 billion per year in July. Reserve Bank of New Zealand raise its Official Cash Rate from 0.75% to 1.00% The rise in the official cash rate comes after last quarter’s which was the first since 2014 when the OCR hit a post-GFC peak of 3.5 per … Continue reading “Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected, Will Not Reinvest QE Proceeds”

RBA Keep Rates at Record Low 0.10% and Ends QE as Expected

The Reserve Bank of Australia held interest rates at an all-time low on Tuesday to just 0.1% as widely expected. The RBA is ending QE with final purchases to take place on Feb 10. The prior pace of QE was A$4 billion/week. The bank said while inflation has picked up, it is too early to conclude that it is sustainably within the target band. RBA printing coming to an end Highlights Cash rate cut maintained at 0.1% To end QE … Continue reading “RBA Keep Rates at Record Low 0.10% and Ends QE as Expected”

RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly

The Reserve Bank of Australia held interest rates at an all-time low on Tuesday to just 0.1% as widely expected. The RBA said the economy is expected to return to pre-Delta path in H1 2022. Leading indicators point to a strong recovery in labor market. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% Omicron variant is new source of uncertainty Household consumption is rebounding strongly The outlook for business investment has improved Economy expected to return to … Continue reading “RBA Keep Rates At Record Low 0.10% With Household Consumption Rebounding Strongly”

Australia October Trade Surplus AUD+11.22bn With Exports Lower on Iron Ore Prices

Australia posted a trade surplus of A$11.22 billion in October exceeding expectations for a surplus of A$11.0 billion. It was the smallest trade surplus since May, amid softening global demand as more countries battled with a resurgence of coronavirus infections. Follows a downwardly revised A$11.82 billion trade surplus in September (from A$12.243 billion). Exports fell 3.0% m/m or A$1.491 billion to A$43.053 billion. Goods were down 3.0% and services fell 6.0% Imports also slipped 3.0 percent on month or A$887 … Continue reading “Australia October Trade Surplus AUD+11.22bn With Exports Lower on Iron Ore Prices”

Australia Placed Well for Recovery says Goldman Sachs

Andrew Boak Goldman Sachs’ Chief Economist for Australia & New Zealand is out with a note positive on Australia’s economic recovery. He said he believed Australia in a good position for recovery extending into the end of this year and next. With the RBA focusing on wages he said he saw slow grinds expected for wage growth and inflation. Goldman noted that to see wage increases, full employment is a critical issue. The wages analysis is in line with Governor … Continue reading “Australia Placed Well for Recovery says Goldman Sachs”

Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected

The Reserve Bank of New Zealand raised its Official Cash Rate from 0.50% to 0.75% as expected as capacity pressures have continued to tighten. RBNZ says headline CPI inflation is expected to measure above 5 percent. Reserve Bank of New Zealand raise its Official Cash Rate from 0.50% to 0.75% The rise in the official cash rate comes after last month’s which was the first since 2014 when the OCR hit a post-GFC peak of 3.5 per cent. RBNZ projections … Continue reading “Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected”

RBA Says Underlying Inflation at 2.5% Mid-Point Would Not Warrant Rate Rise

Reserve Bank of Australia Governor Lowe in giving a speech after today’s release of the RBA November meeting minutes addressed what it would require for a rate rise in Australia. He spoke of varying inflation degrees and the difference domestically and globally.   Reserve Bank of Australia Governor Lowe speech:  Recent Trends in Inflation  Address to the Australian Business Economists (ABE)Online and Sydney – 16 November 2021  Speech Headlines via Reuters  Latest data, forecasts do not warrant a rate rise in 2022 Economy, … Continue reading “RBA Says Underlying Inflation at 2.5% Mid-Point Would Not Warrant Rate Rise”

Australian Employment Hit by Reopening of Victoria and NSW

Australia saw much weaker than expected employment as the reopening of the country after the Covid Lockdown was not captured in the report.   Unemployment rose to 5.2% from 4.8% expected. An even bigger miss in employment change, losing -46.3K jobs versus an expected 50K gain and prior -138K October Jobs Highlights Employment Change: -46.3K for an ugly miss indeed expected 50K, prior -138K Unemployment Rate: 5.2% expected 4.8%, prior 4.6% Full-Time Employment Change: -40.4K prior was 26.7K Part-Time Employment … Continue reading “Australian Employment Hit by Reopening of Victoria and NSW”