Rates on Hold ... For Now!

Posted on 05. Apr, 2011 by Chris Lang.

Yesterday, the Reserve Bank left the cash rate unchanged at 4.75%. And these graphs will help to explain the current dilemma.

For the time being, the RBA's focus is upon "inflation excluding volatile items" — in part caused by the various natural disasters, both here and overseas.

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Election Year Blues?

Posted on 11. Mar, 2010 by Chris Lang.

It's not just rising interest rates that the Rudd government will have to contend with, in the run-up to the next election. The joy of the resources boom restarting brings with it certain unwanted side effects. What you will start to see is wage rate increases; plus the drawing away of materials and equipment, from [...]

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Biggest Economic Threat For Australia

Posted on 13. Jan, 2010 by Chris Lang.

It might surprise you to hear this, however ... A Strong US Recovery ... would probably be the worst thing to happen for Australia in 2010. If that occurs, the US Federal Reserve would be forced to quickly raise interest rates, from zero to around 3%. And that would cause the collapse in the Australian [...]

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The Future for Interest Rates

Posted on 24. Nov, 2009 by Chris Lang.

The RBA's underlying rate of inflation rose by 3.5% in the year to September — less that what the markets and the RBA itself expected. However, this figure needs to fall significantly for the RBA will put interest rates on hold again. With low inventories and industry capacity-use levels up over 80% once more ... [...]

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You May be a Doubter ... But I say: "Yes, we can!"

Posted on 23. Feb, 2009 by Chris Lang.

The Weekend Financial Review ran several articles, which seemed to echo many of the sentiments contained in my last blog about the Capital City Markets — but perhaps putting things a little more bluntly. Brisbane Mark Ludlow (on page 2) referred to Queensland as having moved from "boom state to gloom state" — because of [...]

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