Extended period of low and stable rates

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Reserve Bank Board meeting   What does it all mean? The average Australian probably doesn’t know just how good the current economic circumstances are. The cash rate is at a 54-year low of 2.50 per cent. And it hasn’t been there for just a month or so, it has been at historic lows for 16

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BetaShares Global Market Review September 2014

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US confidence drives international equities growth Anticipation of an increase in US interest rates in 2015 drove a rise in the US dollar, falling commodities prices and a sustained sell-off in the Australian equities market during the month of September, according to BetaShares’ Global Market Review. The review, which analyses performance across seven major asset

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Dwelling approvals hit record highs

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Dwelling Approvals; International Trade; RBA Senate Testimony Dwelling approvals: Dwelling approvals rose by 3.0 per cent in August and are up 14.5 per cent over the year. Over past 12 months a record 197,571 dwellings were approved – marking the highest result on record. Trade deficit narrows: Australia’s trade deficit narrowed by $288 million to a

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Record Wealth! RBA open to “macroprudential” tools

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Financial Accounts; Population; Job Vacancies; Final Budget Outcome Household wealth stood at a record $7,780.6 billion at the end of June, up $97.4 billion or 1.3 per cent over the quarter. In per capita terms, wealth rose to a record $330,841 in the June quarter, up $2,860 over the quarter Population: Australia’s population grew by 111,500 people over the

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RBA Board Minutes – September 2014

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The RBA maintained its guidance that “the most prudent course was likely to be a period of stability in rates”. The tone was in line with previous Board minutes, but there was a strong focus on the housing market and in particular the Bank’s growing concerns around the pace of house price inflation. The Board

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Weekly market & economic update – week ending 22 August, 2014

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Investment markets and key developments over the past week Share markets continued to move up over the past week helped by a combination of good economic data in the US, expectations that central banks will remain supportive and as geopolitics took a back seat. Good earnings results also helped boost the Australian share market to

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RBA Governor says growth could be higher. It’s not just about interest rates

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RBA Governor’s Testimony – August 2014 The Governor’s opening statement forecast that growth of 2‑3%pa is the most likely outcome for 2014/15 and inflation to remain consistent with the 2% to 3% target. Economic growth could be higher but there are significant forces restraining activity. There are signs of a pick‑up in non‑mining investment but

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Weekly market & economic update – week ending 8 August, 2014

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Investment markets and key developments over the past week The share market correction continued over the last week with a whole range of issues weighing on confidence including Russian retaliatory sanctions, increased fears of a Russian invasion of Ukraine, the US finally committing to air strikes on northern Iraq, poor data in Europe, strong data

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A good year, or a very good year?

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Economic & financial perspectives A good year:  Total returns on Australian shares (All Ordinaries Accumulation index) are currently up 17.3 per cent over 2013/14. If returns hold at these levels through to June 30 then investors will have experienced the best back-to back returns in seven years. Other returns higher: Returns on dwellings are up 15.3

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RBA: Stable interest rates; labour market in focus

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RBA Board minutes Reserve Bank Board minutes: Board members continue to expect a period of stability in interest rates. Board members appeared to spend a lot of attention on the labour market, commenting “that a range of indicators of labour demand suggested a modest improvement in prospects for employment, although the unemployment rate was still expected

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