Reserve Bank employs a ‘jawboning’ strategy

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The Reserve Bank Board has left the cash rate at 4.75 per cent for the ninth straight month (covering eight formal meetings) – the most stable period for rates in five years. The next meeting is on September 6 2011. With that latest reading of inflation on the high side of expectations, the Reserve Bank... Read more continue reading

Weekly economic and market report

Weekly economic and market report for week commencing 17 July 2011 Headline developments of the past week European debt problems took centre stage yet again over the last week. Until recently it appeared that the European Union had put a firewall around Greece, Ireland and Portugal in order to protect Spain and Italy and as... Read more continue reading

State of the states – state & territory performance report

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How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment, construction work done; population growth; housing finance and dwelling commencements. Just as the Reserve Bank uses decade averages to determine the level of “normal” interest rates; we have done... Read more continue reading

Stock market Bubbles

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Market Bubbles While there is a lot of evidence that stock markets are simply unpredictable, there are times when prices get a long way out of kilter with any sense of reasonable value. The term used is “bubble”.  Bubbles are harder to avoid than might appear. Herd instinct seems to be firmly embedded in the... Read more continue reading