Reserve Bank of New Zealand Raised Rate 25 Basis Points With Cost Pressures More Persistent

The Reserve Bank of New Zealand raised its Official Cash Rate from 0.25% to 0.5% as expected. Despite the persistent Delta variant outbreak expectations cost pressures are becoming more persistent. The move follows Mexico and Brazil Raising Rates.

Europe Postpones Free Trade Agreement Negotiations with Australia

The European Union has postponed the next round of negotiations for a free trade agreement with Australia for a month. The move clearly is in retribution for the cancellation of the French $90 billion submarine contract.

Australia’s Manufacturing PMI Rose To 57.3 in September as Output and New Orders Returned to Growth

Australia’s Markit preliminary PMIs for September saw Manufacturing at 57.3 (prior 52.0) and Services off a 14-month low to 44.9 (prior 42.9) as continued lockdowns aimed to bring the COVID-19 situation under control dampened business conditions.

Australian Farmers Grow and Sell Record $73 billion of Produce in 2021-22

Australia’s agriculture industry will produce a record $73 billion worth of produce in 2021-22 up from $66.3 billion in 2020-21 the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARE) September crop report released Monday said

RBA Keep Rates At Record Low 0.10% Maintains Tapering Plans Extending Purchase Period Until February

The Reserve Bank of Australia held interest rates at an all time low on Tuesday to just 0.1% as widely expected with lockdowns. Sees setback to the economic expansion only temporary. Delta outbreak is expected to delay, but not derail, the recovery. RBA Cutting & Printing Highlights Cash rate cut maintained at 0.1% 3-year bond yields target 0.10% Interest rate on new drawings under the Term Funding Facility to 0.1 per cent Interest rate on Exchange Settlement balances to zero … Continue reading “RBA Keep Rates At Record Low 0.10% Maintains Tapering Plans Extending Purchase Period Until February”

Uncertain Australian Economic Outlook Sees RBA Keep Rates At Record Low 0.10%

The Reserve Bank of Australia held interest rates at an all time low on Tuesday to just 0.1% as widely expected despite lockdowns. The RBA noted that in the past once virus outbreaks are contained, the economy bounces back quickly. No change to QE tapering stance, to purchase bonds at A$5 billion per week until early September. RBA Cutting & Printing Highlights RBA governor Philip Lowe said while the national economic recovery had been stronger than expected, the recent lockdowns … Continue reading “Uncertain Australian Economic Outlook Sees RBA Keep Rates At Record Low 0.10%”

Australia’s Consumer Prices Rise Sharply as Fuel Prices Jump 6.5% in The Quarter

Inflation continues to bubble along in Australia to the highest since Q3 2008. Australian consumer prices rose 0.8% in the second quarter. Automotive fuel prices climbed 6.5% and Electricity prices jumped 3.3%. The ABS expects the sharp jump in annual inflation to be temporary

Australia’s Consumer Confidence Dropped With Sydney, Victoria and South Australia Lockdowns

Australia’s consumer confidence dropped 3.5% last week, as Sydney, Victoria and South Australia remained under a lockdown says ANZ Roy Morgan. Sentiment around current economic conditions dropped 6%.