Australia’s latest economic problem?

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Australia’s economy pleasantly surprised most analysts when it grew at its fastest pace in two years over the March quarter, to sustain an expansion that dates to the last quarter of 1991.[1] Increased export sales, more household spending and greater investment in dwellings drove an economic expansion of 1.1% in the March quarter, a report

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CommSec: Interest rates held steady…for now

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Reserve Bank Board meeting The Reserve Bank Board has left the official cash rate at 2.75 per cent for the second straight month. In May the RBA cut the cash rate by 25 basis points to the lowest levels recorded in 53 years. The next RBA Board meeting is on August 6 2013. The accompanying

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Reserve Bank: Watch, wait, analyse

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The minutes of the April 2 Reserve Bank Board meeting concluded: “Overall, recent data suggested that interest-sensitive parts of the economy were responding to the historically low levels of lending rates and it remained likely that this had further to run.” What do the Minutes reveal? “Overall, recent data suggested that interest-sensitive parts of the economy

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Banks warned on lending standards

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The Reserve Bank has warned banks to “resist the pressure to ease lending standards to gain market share.” Household conservatism is encouraged – “Ongoing consolidation of household balance sheets would be desirable from a financial stability perspective”. The RBA has provided special sections in the report dealing with the funding composition of banks and households mortgage repayment

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Reserve Bank holds fire… for now

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The Reserve Bank Board has left the official cash rate at 3.50 per cent for the third straight month. The variable housing rate is applying modest stimulus to the economy at present at 6.85 per cent, below the 15-year average of 7.20 per cent. The next RBA Board meeting is on October 2 2012. The

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Reserve Bank exhibits quiet confidence

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The Reserve Bank Board has left the official cash rate at 3.50 per cent for the second straight month. The variable housing rate is applying modest stimulus to the economy at present at 6.85 per cent, below the 15-year average of 7.20 per cent. The next RBA Board meeting is on 4 September 2012. The Reserve

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Weekly economic & market update

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Both the Fed and the ECB disappointed markets with a lack of immediate action. However, both promise of action to come if needed, so its not nearly as bad as the initial market reaction following their meetings suggests. ECB President Draghi basically confirmed a plan to buy bonds in countries such as Italy and Spain

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Reserve Bank maintains a watching brief

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The Reserve Bank Board left the official cash rate on hold at 3.50 per cent. The cash rate is at the lowest level in 2½ years (December 2009). The next RBA Board meeting is on August 5 2012. The Reserve Bank leaves the door open for further cuts. “At today’s meeting, the Board judged that,

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RBA Testimony conveys confidence in domestic economy

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The Reserve Bank Governor has delivered the clearest message yet that the Central Bank has a strong degree of confidence in the outlook for the domestic economy. The tone and comments from the testimony is consistent with CommSec’s view that the cash rate will remain on hold until at least the May meeting. While the

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RBA: Global growth risks outweigh investment boom

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Downside risks to global economy prompted Reserve Bank to cut interest rates and minutes of the last Reserve Bank Board meeting confirm that policymakers were concerned about the strength of the global economy. “Developments in Europe continued to pose downside risks to the global economy and, consequently, also to Australia. These risks had, if anything,

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