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%”

Australian Wage Price Increase Led By The Private Sector As Economy Normalizes

Australia Wage Price Index for Q1 2021 came in at +0.6% q/q slightly ahead of the expected 0.5%. Yesterday the RBA minutes showed the bank saying wage growth would need to be “sustainably” above 3% to meet inflation target.

RBA Minutes Repeat No Rate Rise Until Actual Inflation Sustainably in Band

The Reserve Bank of Australia held interest rates at an all time low in May to just 0.1% as widely expected. In the RBA minutes released Tuesday the central bank repeated policy to remain very easy for some time and remains committed to maintaining highly supportive monetary conditions until its goals are achieved.

Australian March Quarter Inflation Well Under Lower RBA Band

With inflation rearing it’s head in many commodities globally ironically Commodity powerhouse Australia Q1 inflation data came in much lower than expected. Q1 2021 Headline CPI 0.6% q/q v an expected 0.9%). Core inflation came in at the lowest reading ever. The Australian dollar sold off on the news with a cash rate hike seemingly in the distant future.

RBA Financial Stability Review Points To Australian Banks Strong Financial Position

The Reserve Bank of Australia’s twice yearly Financial Stability Review provided no surprises. Earlier in the week the RBA held interest rates at an all time low on Tuesday to just 0.1% as widely expected. Australian banks in strong financial position coming out of pandemic banks have abundant liquidity and funding,