CBA Economics: RBA open to further rate cuts

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Minutes of the June Reserve Bank Board meeting suggest Board members were very comfortable to keep interest rates on hold. But believed that they could do more if necessary. Reserve Bank Board members discussed the response by the household sector to low interest rates “There were also signs that the appetite for borrowing in the [...]

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Youth unemployment falls to a 4½-year low

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Employment rose by 1,100 in May after rising by a revised 45,000 jobs in April (previously reported as a 50,100 rise in jobs). Economists had expected a 10,000 fall in jobs in May. Full-time jobs fell by 5,400 after rising by 29,800 in May. Part-time jobs rose by 6,400 in May after rising by 15,200 [...]

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Stable rates boost confidence

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The Westpac/Melbourne Institute index of consumer confidence rose by 4.7 per cent in June. All five components of the index rose in June. The index is up 6.9 per cent over the year to June. In the June quarter, 34.0 per cent of consumers believe that the wisest place for new savings is in the [...]

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Chinese economy: firm growth, low inflation

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Chinese activity and trade data were close to market expectations in May but inflation data printed below economist forecasts. What do the figures show? Retail trade rose at a 12.9 per cent annual rate in May, in line with forecasts and up on the 12.8 per cent annual rate in April; Industrial production rose at [...]

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Data deluge: Economy is in good, not great shape

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Retail trade rose by 0.2 per cent in April after falling by 0.4 per cent in March and rising by 1.3 per cent in February. Annual spending growth held steady at 3.1 per cent. But sales by large retailers rose by 0.7 per cent in April and by 5.0 per cent over the year. Job [...]

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Investment records biggest fall in 3½-years

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  New business investment in buildings or equipment fell by 4.7 per cent in the March – the weakest result in 3½-years and below forecasts for a +0.5 increase.  Mining investment fell by 6.2 per cent while manufacturing spending fell by 0.8 per cent and spending by other industries fell by 2.9 per cent  The [...]

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Smallest Budget Deficit in almost four years

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In the year to April, the budget deficit stood at $32,332 million (around 2.0 per cent of GDP), the smallest deficit in 44 months. What do the figures show? The underlying budget deficit for the twelve months to April stood at $32.332 billion, the lowest annual deficit in 44 months and a $11.4 billion improvement [...]

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Budget 2013 – honey, who ate the surplus?

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The 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. [...]

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Home loans soar but business confidence still gloomy

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The 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. [...]

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15 key takeouts from RBA report

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The 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 [...]

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