Retirees face dilemma as cash rates remain on hold

From

The Reserve Bank of Australia’s decision to keep official interest rates on hold for the ninth consecutive month was expected but still came as a blow for income-hungry retirees grappling with falling term deposit rates and volatile equity markets. The last movement in rates was in August last year when the RBA cut rates to

continue reading

Weekly market & economic update – week ending 7 February, 2014

From

Key events of the past week and implications While the past week got off to a bad start after a weather affected slump in the US ISM manufacturing conditions index, mostly good economic data and earnings reports thereafter along with some settling of emerging market worries and a strong easing bias from the ECB saw

continue reading

How & where we spent in 2013

From

Consumer spending perspective Retail trade in 2013: Over 2013 as a whole, Australians spent $264.2 billion at retail outlets. Spending was up 3.2 per cent over 2012 – the strongest calendar-year growth in four years. “New normal?” The 3.2 per cent growth in spending was just below the 5-year-average growth rate of 3.4 per cent. In real

continue reading

RBA: Caught between a rock and a hard place

From

Standard Life Investments, the global asset manager, believes the Reserve Bank of Australia is likely to keep interest rates on hold well into 2014, with the strength of the housing market giving the central bank little room to lower rates despite its desire for a lower exchange rate. Speaking yesterday in Sydney, Jeremy Lawson, Chief

continue reading

RBA: Cautious optimism but in wait and see mode

From

RBA Board minutes Reserve Bank Board minutes: Minutes of the November Board meeting confirm that the Reserve Bank is assessing developments before deciding the next move in interest rates. “it was prudent to hold the cash rate steady while continuing to gauge the effects, but not to close off the possibility of reducing it further should

continue reading

Petrol price slides, but Middle East the key

From

Petrol prices Petrol prices: According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 4.5 cents a litre to 149.2 c/l in the week to August 25. CommSec expects fuel prices to lift by 1-2 cents a litre in the next fortnight. What does it all mean? The national

continue reading

Weekly market & economic update – week ending August 23

From

Key events of the past week and implications Fed taper fears dominated over the past week resulting in further increases in bond yields and volatile share markets. Some emerging share markets were hard hit as taper fears combined with worries about the economic outlook in countries like India, Indonesia and Brazil. Renewed concerns about Italy

continue reading

Lending lifts to 5-year high; Petrol price slides

From

Petrol prices; Lending Finance; Credit & debit card lending Petrol prices: According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 2.3 cents a litre to 151.2 c/l in the week to August 11. CommSec expects fuel prices to fall by a further 2-3 cents a litre in

continue reading

Weekly market & economic update: week ending August 9

From

Key events of the past week and implications Positive global economic data was a mixed blessing over the last week as it combined with comments from various US Federal Reserve officials adding to expectations that the Fed will start to slow or “taper” its quantitative easing program when it next meets in September and this

continue reading

Job losses but Aussies work longer hours

From

Labour force; Chinese trade data Jobs & jobless rate: Employment fell by 10,200 in July after rising by a revised to 9,300 jobs created in June (previously reported as a 10,300 rise in jobs). The unemployment rate held steady at 5.7 per cent in July – a four year high. The participation rate fell from 65.3 per

continue reading