Watchful RBA keeps open mind on rates

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  The Reserve Bank may have downgraded growth forecasts over the next year, however the accompanying commentary certainly suggests that Board Members are more comfortable than even just three months ago. The risks to the “global economy appear to be more balanced” while domestically the “significant monetary stimulus already in place, and signs of lower

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RBA exhibits quiet confidence

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The Reserve Bank Board has left the official cash rate at 3.00 per cent at its first meeting in 2013. The variable housing rate is applying modest stimulus to the economy at present at 6.45 per cent, well below the 15-year average of 7.20 per cent. The next RBA Board meeting is on March 5

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RBA: Softening employment justifies rate cut

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The latest Reserve Bank Board minutes suggests that the decision to cut interest rates in December was largely due to the softening in labour market conditions and confirmation of the peak in resource investment. The Reserve Bank Board members conceded that the pull back in the mining sector was impacting the broader economy. “Members observed

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Interest rates fall: Are we there yet?

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The Reserve Bank Board reduced the official cash rate by 25 basis points (quarter of a per cent) to 3.00 per cent. The next Board meeting is on February 5 2013. The accompanying commentary is relatively upbeat, suggesting that the Reserve Bank wants to sit and pause – especially with the so-called US “Fiscal cliff”

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Oliver’s Insights – RBA cuts rates, but not there yet

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The attached edition of Oliver’s Insights looks at the decision by the RBA to cut the official cash rate to its 2009 GFC low of 3%. The key points are as follows: While the RBA has cut the official cash rate back to its post GFC record low of 3%, overall policy settings are nowhere

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Biggest drop in profits since GFC

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Company profits fell for the fourth straight quarter, dropping by 2.9 per cent in the September quarter. Profits stand 13.0 per cent lower than a year ago. Sales fell in 8 of 15 sectors in the September quarter while inventories rose for the fourth straight quarter, up 1.1 per cent. Wages & salaries fell by

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RBA considers further rate cuts

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The latest Reserve Bank Board minutes suggests that the decision to leave interest rates on hold in November was finely balanced as higher inflation offset a slowing domestic economy. The Reserve Bank Board members conceded that the domestic economy had softened. “Overall, growth of the Australian economy had slowed from an above-trend pace earlier in

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Have interest rates bottomed?

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The Reserve Bank has retired to the interest rate sidelines to assess the impact of the three rate cuts over 2012: “there are signs that easier conditions have been having some of the expected effects, and further effects can be expected over time.” The Reserve Bank has downgraded its economic growth forecast for December 2013

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Interest Rates: End Game or Strategic Pause?

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The Reserve Bank Board left the official cash rate at 3.25 per cent. The Bank basically indicated that it wanted to assess the impact of previous rate decisions. In addition the Board highlighted recent inflation data and global developments: “prices data slightly higher than expected and recent information on the world economy slightly more positive.”

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RBA justifies rate cut

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The latest Reserve Bank Board minutes suggests that the decision to cut interest rates in October was more to boost confidence rather than to address any significant structural downturn. The Reserve Bank Board members conceded that the ongoing slowdown in China and lack of significant stimulus by Chinese policymakers was behind the decision to cut

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