Reserve Bank of Australia RBA Leaves Rates at 1.00% Record Low

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  • #21515
    Corporal
    Participant

    The Reserve Bank of Australia left interest rates…

    [article]1664[/article]

    #21524
    TradersCom
    Keymaster

    Australia July AIG Construction PMI Continues Slide TO 39.1 From June 43.0

    11th consecutive month in contraction to 6 year low

    The further fall in the Australian PCI® in July largely reflected a steep and accelerated decline in new orders and employment. The key activity sub-index remained in negative territory for a 10th consecutive month although its rate of contraction was broadly unchanged from June.

    Across sectors of the Australian PCI® (on a trend basis), engineering construction was broadly stable in June, continuing the relatively subdued conditions that have typified the sector since late 2018. Both the house building and commercial construction sectors declined at marginally slower rates in July, while apartment building fell for a 16
    th month – albeit at a rate that was broadly unchanged from June.

    Residential building respondents to the Australian PCI® frequently reported on subdued market conditions due to soft new orders and the dampening influences on demand from low enquiries and uncertainty surrounding the economic outlook. On a positive note, there were indications by some house building respondents that more stability had returned to the housing market following the Federal election and the recent easing of lending restrictions.

    https://cdn.aigroup.com.au/Economic_Indicators/PCI/2019/PCI_Jul_2019_93740d.pdf

    Australian Industry Group Performance of Construction Index, for July

    #21622
    Helmholtz Watson
    Participant

    [b]Reserve Bank of Australia Deputy Governor Guy Debelle Q&A
    Speaking after markets crumbles around the world:[/b]

    US yield curve is not the best signal of recession right now
    Outlook for domestic infrastructure investment is pretty solid

    #21714
    Helmholtz Watson
    Participant

    RBA’s Lowe Warns Central Banks Monetary Can’t Stop Economic Shocks Alone

    Reserve Bank of Australia Governor Philip Lowe said “We are experiencing a period of major political shocks,” on Saturday at the Kansas City Fed’s retreat in Jackson Hole, Wyoming. Citing developments in the U.S., Brexit, Hong Kong, Italy and elsewhere. “Political shocks are turning into economic shocks.”

    “Monetary policy cannot deliver medium-term growth,” Lowe said. “We risk just pushing up asset prices.”

    Lowe said that infrastructure investment and structural reform in economies around the world would have much greater impact than cutting interest rates. But politicians are reluctant to act, he said.

    Ending the political uncertainty would also bring benefits, he said. “With these three levers stuck, the challenge we face is monetary policy is carrying too much of a burden.”

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