Consumer sentiment fell by 7.0% in May to be 2.4% higher than a year ago. The fall in consumer sentiment over May follows a fall of 5.1% in April. Despite the rate cut in May, and April’s solid jobs numbers, sentiment appears to have been dampened by a negative response to the federal budget. The [...]
continue readingGlobal shares continued to move higher over the last week, but another trend that’s clearly evident is the continuing slide in the $A. The past week saw it fall decisively below parity and then keep going. A negative reaction to the budget didn’t help but the big drivers of the falling $A are a downtrend [...]
continue readingThe attached edition of Oliver’s Insights takes a look at the Australian Government’s 2013-14 Budget. The key points are as follows: The positives in the Budget are more for education, disability care & roads and savings in middle class welfare. However, the deficit is far worse than expected, with a surplus pushed out at least [...]
continue readingThe Federal Budget is hardly the most riveting document you are ever likely to read. Sure you know it’s important, but the problem is that it’s a huge document with countless facts, figures and tables. And when it comes to analysis, economists seem to be writing for other economists; and accountants writing for other accountants. [...]
continue readingThe number of new owner-occupier housing loans rose by 5.2 per cent in March, the strongest rise in four years. But the share of loans taken up by first home buyers fell to a near 9-year low. What does it all mean? Reserve Bank Board members are probably wincing after the latest home loan data. [...]
continue readingThe Reserve Bank has made only subtle changes to its forecasts on inflation and no change to forecasts on economic growth. Reserve Bank general views haven’t become more negative or more positive. And there is no clear intention for rates to be cut again. The 15 key take-aways from the Reserve Bank report: There is no [...]
continue readingShare markets continued to move ahead over the past week helped by a combination of reasonable profit results, a further fading of the fiscal austerity fetish in Europe with France being the latest country to receive an extension of time to get its budget down to 3% of GDP and more monetary easing with both [...]
continue readingThis edition of Oliver’s Insights looks at the RBA’s latest cut to interest rates. The key points are as follows: The RBA has cut interest rates again and they are likely headed even lower, probably to 2.5% in the next few months. The mining investment slowdown is now looming as the response by the non-mining economy [...]
continue readingThe Reserve Bank Board has cut interest rates by 25 basis points to 2.75 per cent. Equivalent official interest rates were last at these levels in 1959/60.The next RBA Board meeting is on June 4 2013. The Reserve Bank has adopted the global central bank manta of “doing whatever it takes” to get the economy [...]
continue readingThe attached edition of Oliver’s Insights takes a look at the outlook for the Australian dollar. The key points are as follows: After doubling in value against the $US over the last decade, the best is likely behind for the Australian dollar. The commodity price boom is starting to fade in response to a moderation in Chinese [...]
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