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”

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”

The Australian ASX 200 Stock Market Closed Up 13% in 2021 With Lithium Plays Starring

Australian Blue Chip ASX 200 ended the ASX finished 2021 at 7,779.20 up over 13% for the year. This compares to a loss of just over 1% in 2020 and a gain of over 20% in 2019. All of the 11 main sectors of the share market were higher except information technology and energy in 2021. Tech went from being the best-performing sector in 2020 to the worst in 2021. Battery materials supplier Novonix was the top stock up 660 … Continue reading “The Australian ASX 200 Stock Market Closed Up 13% in 2021 With Lithium Plays Starring”

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”

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”

RBA Keep Rates At Record Low 0.10% Ends April 2024 Aussie Bond 0.1% target

The Reserve Bank of Australia held interest rates at an all time low on Tuesday to just 0.1% as widely expected. The RBA discontinued the target of 10bp for April 2024 Australian Government bond after 10-year Aussie bonds broke over 2% for first time since March 2019. 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 … Continue reading “RBA Keep Rates At Record Low 0.10% Ends April 2024 Aussie Bond 0.1% target”

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%”