RBA Holds Rates, Returns To Watch & Wait Mode
As expected the Reserve Bank left monetary policy unchanged with the cash rate unchanged at 0.10% and no sign of any desire to make an adjustment any time soon.
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RBNZ Delivers Further Easing In Monetary Policy
The Reserve Bank of NZ is persisting with its very expansive monetary policy settings and joining the Reserve Bank of Australia in lending money to banks to on-lend to customers.
Read MoreRBA Lifts Forecasts But Warns On “Bumpy” Recovery
While the Reserve Bank has revised upwards its forecasts for the Australian economy, predicting it will now contract by a still substantial 4% in the year to the December,’ the outlook remains weak-looking into 2021.
Read MoreFed Reaffirms Low Rates Amid Election Uncertainty
As expected the US Fed kept its very easy monetary policy intact on Thursday and again said it would do whatever it can in the coming months to sustain a US economic recovery that is again being threatened by a spreading coronavirus pandemic.
Read MoreRBA: Economy Better But Still Weak And Needs Help
The Reserve bank moved to further ease monetary policy even though there are clear signs the economy is doing much better than thought in August. But jobs growth and wages remain weak, household consumption is being supported by the likes of Jobkeeper and tax cuts, wage rises are remote and being cut.
Read MoreRBA Ramps Up QE, Cuts Rates To 0.1%
As expected, the prospect of weak inflation, high unemployment, and tepid economic growth for the next few years has forced the Reserve Bank into a set of historic moves at Tuesday’s Melbourne Cup day monetary policy meeting.
Read MoreWhy A Rate Cut Is Looming
Absolutely nothing in the September quarter consumer price index for markets, although the core or underlying inflation rate remains too low for comfort for the Reserve Bank and increases the chances of a rate cut next Tuesday and other easing measures.
Read MoreInflation Spike Unlikely To Worry The RBA
Gold bugs snore on or why today’s September quarter inflation figures won’t matter (except as a part of economic history and statistical record-keeping).
Read MoreRisks Ahead But Standard & Poor’s Reaffirms AAA Rating
Ratings group, Standard & Poor’s has reaffirmed its AAA rating for Australia and maintained its negative outlook.
Read MoreRBA Flags Major Change In Monetary Policy
Another major shift in monetary policy from the RBA which will change the timing of interest rate movements in years to come as the bank turns its back on old, established ways of reacting to events in the economy that are perceived to be inflationary, such as a big wage rise or a surge in oil prices.
Read MoreWhy retirees urgently need an alternative to cash
With cash rates set to stay even lower for even longer, retirees urgently need higher-earning alternatives for the defensive portion of their portfolios. Actively managed fixed income investments can provide the answer – and the time to act is now.
Read MoreRBA Holds But Hints At November Rate Cut
No rate cut from the Reserve Bank yesterday – thwarting a growing list of economists, analysts, and others who thought there would be one. In fact, two out of three economists in various polls thought there would be a rate cut on the eve of the 2020-21 budget.
Read MoreCould The RBA Provide A Pre-Budget Boost?
A defining week for Australia this week with all attention on the Federal budget which for once, will overshadow the monthly Reserve Bank monetary policy meeting earlier in the day. Could the Reserve Bank announce a new series of measures to go with the budget spending?
Read MoreKeating’s RBA Criticisms Miss The Mark
It’s clear Paul Keating has failed to understand what the Reserve Bank has done to support the economy – not the federal government and its budget, as he wrongfully claimed it should be doing – but the economy as a whole – business, consumers, farmers, elderly, young – everyone.
Read MoreRBNZ Edges Closer To Negative Rates
The Reserve Bank of NZ continues towards the announcement of a negative interest rate regime later this year. The bank said in its post-meeting monetary policy statement on Wednesday that it had made progress on what it calls a Funding for Lending program with the country’s banks that will be a part of the negative rates regime.
Read MoreRates Lower For Longer After RBA Warns On “Gradual” Recovery
RBA Governor, Guy Debelle made it clear interest rates will remain at current ultra-low levels for the next three years and possibly more. In an online speech he said further rate cuts could happen as the economy struggles to break free of the impact of the pandemic and sluggish demand.
Read MoreRBNZ Mulls Negative Rates As RBA Rules Them Out
With the Reserve Bank of NZ tipped to start heading down the road towards a negative interest rate regime either in today’s monetary policy decision or later in the year, the Reserve Bank of Australia has ruled out a similar move.
Read MoreFed Vows To Keep Keep Rates Near Zero Until 2023
The US Federal Reserve expects to leave interest rates unchanged at record lows until the end of 2023 at the earliest, and beyond if necessary.
Read MoreFed Chair Warns “It Will Get Harder From Here”
Fed chair Jay Powell had a message late last week for Australia, the US (of course), and the rest of the world about the battle to control the coronavirus and emerge with the economy in good shape.
Read MoreRBA Holds Steady But Increases Cheap Bank Funding
As expected the Reserve Bank of Australia held official interest rates at a record low 0.25% for another month as it prepares for the release later this morning of what will be the worst set of national accounts and GDP data for decades.
Read MoreRBA On Hold As Victorian Lockdown Stokes Concern Over Unemployment
The worsening situation in Victoria was obvious to see in the post-meeting statement from Reserve Bank governor, Phil Lowe which revealed a higher estimate of unemployment than before from the central bank and concerns about the wider impact of events down south.
Read MoreJobKeeper Extended As RBA Warns On ‘Bumpy’ Road Ahead
While the Federal government decided to keep JobKeeper and JobSeeker but start tapering it later in the year, Reserve Bank governor Philip Lowe yesterday warned the unemployment rate will climb further this year as the coronavirus pandemic continues to impact activity – especially in Victoria and NSW.
Read MoreRBA In Wait And Watch Mode Amid “Highly Uncertain” Recovery
Following its monthly monetary policy meeting on Tuesday, the bank’s board held rates at the record low level where they have been since late March when much of the economy was lockdown to stop the spread of the coronavirus.
Read More“Some Years Away”: RBA Talks Down Outlook Despite Improving Data
While the Australian economy is doing better than originally feared in the face of the coronavirus pandemic a senior Reserve Bank official has warned government fiscal and RBA monetary policy (interest rate) help will be needed for years.
Read MoreRBNZ Keeps Rates On Hold, Eyes More Stimulus
The Reserve Bank of NZ has left its official cash rate at 0.25 percent, but like all other central banks around the world, it remains uncertain about the future and whether the current level of stimulus is enough.
Read MorePayroll Recovery Hints At Shallower Jobs Slump
The release yesterday of the Reserve Bank’s June board meeting minutes a fortnight ago did not change thinking on the outlook for the economy – it’s still tough, interest rates will remain low and unemployment is the biggest problem, even though it may not quite be the same concern as it was when the lockdowns started in March.
Read More“Committed” Fed Sees Rates At Zero Through To 2022
Contrary to the expectations of many in Wall Street (and President Trump), the US economy won’t be taking off into recovery any time soon, according to the US Federal Reserve’s latest post monetary policy meeting statement and quarterly forecasts.
Read MoreRBA Reiterates Need For Fiscal Support With Monetary Policy On Hold
No movement in the cash rate of 0.25% from the Reserve Bank’s June meeting yesterday as the bank also continues to target the three-year bond rate at 0.25%.
Read MoreGDP In Focus With A Technical Recession No Longer A Certainty
The economy is front and centre this week in Australia with the monthly Reserve Bank meeting tomorrow, the March quarter national accounts and GDP figures on Wednesday and a string of important data releases for April and May.
Read MoreKiwi Central Bank Doubles Down On QE
The Reserve Bank of New Zealand has boosted its major support package by 90% to $NZ60 billion while both keeping the Official Cash Rate steady at 0.25%, and suggesting that it could be cut further.
Read MoreRBA Reverts To Wait & See Mode As Dim Economic Data Rolls In
No change in interest rates from the Reserve Bank – an expected outcome from the May meeting yesterday but we got more bad news about the damage being done to the economy by the COVID-19 related lockdowns.
Read MoreCentral Bank Liquidity Is Driving Everything
This is similar to the recovery in 2009 and certainly throughout 2013 when the market was supported by the final instalment of quantitative easing. As I continue to promote, the massive liquidity being injected by central banks and Governments around the world has to find a home somewhere.
Read MoreJapanese Economy Heads Into Stormy Weather
Looking at the data released this week, you can understand why the Bank of Japan moved to an even easier monetary policy stance at its truncated one-day meeting on Monday.
Read MoreInflation Edges Higher But Well Contained Amid COVID Crisis
The March quarter’s Consumer Price Index gave us a hint of what might have been had the COVID-19 pandemic not hit, but the data also confirmed that apart from government-driven charges for tobacco and alcohol costs and private health care, the 0.3% quarter on quarter and 2.2% annual reading would have been much lower.
Read MoreBank Of Japan Steps Up Stimulus
While the BOJ kept its interest rate targets unchanged, as had been widely expected, it pledged to buy an unlimited amount of bonds to keep borrowing costs low as the Abe government tries belatedly to spend its way out of the deepening economic pain from the coronavirus pandemic.
Read MoreGloomy RBA Governor Warns On Worst Economic Hit In 90 Years
Reserve Bank governor Philip Lowe has given the strongest (and gloomiest) forecasts for the looming hit to Australian economic activity from the COVID-19 pandemic and measures governments have taken to control its spread.
Read MoreChina Confirms Cut To Benchmark Lending Rate
As expected China cut its key loan prime rates (LPR) on Monday but that that still leaves the rates the highest among major economies.
Read MoreMagic Money Tree – QE & Money Printing & Their Part In The Economic Rescue
This note looks at what QE is and how it entails printing money, why it’s being used and what the risks are.
Read MoreChina’s Central Bank Actions Belie Smooth Recovery
The People’s Bank of China (PBOC) said it was lowering the one-year medium-term lending facility (MLF) loans to financial institutions to 2.95%, the lowest since the liquidity tool was introduced in September 2014, down 20 basis points from 3.15% previously.
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