Tag Archives: rba
Interest Rates Looking Forward
Posted on 03. Jun, 2010 by Chris Lang.
... and Commercial Property
This week's decision by the RBA to leave the cash rate on hold was an easy one — mainly because the major banks had basically helped it out, by increasing their rates earlier by a greater margin.
The RBA's view was that the current rate of 4.5% was "appropriate for the near term". [...]
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Distortion Guaranteed?
Posted on 20. May, 2010 by Chris Lang.
While the Rudd government may have moved quickly to provide guarantees for the major Banks during a financial turmoil ... the impact of doing so has been disastrous for borrowers.
Right now, these major Banks seem to account for virtually 80% of all owner-occupier loans for property.
As such, the margins they are charging have never been [...]
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Interest Rate Rises ...
Are they a Good Sign?
Posted on 05. May, 2010 by Chris Lang.
The RBA's decision on interest rates yesterday came about because of what's happening here in Australia, rather than in Europe.
It has been made against the backdrop of our exporters having recently extracted massive price hikes for iron or in coal, as a result of China's strong growth.
Since the global turmoil started in 2008, the $A [...]
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Will Interest Rates Affect
Commercial Yields?
Posted on 07. Apr, 2010 by Chris Lang.
Yesterday, the RBA confirmed an upward bias with its latest rate increase.
This table from today's Financial Review seems to sum up the RBA's position fairly well.
Residential property prices are still surging (particularly in Sydney & Melbourne); and our commodity exports have also regained their momentum.
As such, the RBA has decided that Australia is in full [...]
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Was the RBA Asleep at the Wheel?
Posted on 04. Mar, 2010 by Chris Lang.
In fact, the RBA has been cautious ... NOT asleep!
Last week, we covered the statistical anomaly relating to Australia's low unemployment figure. And that may well have influenced the RBA in holding rates steady last month.
Although, the patchy spending in December and January probably coloured their thinking as well.
Nonetheless, you continue to see a [...]
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"Statistics Never Lie, or Do They?"
Posted on 25. Feb, 2010 by Chris Lang.
There are some interesting outcomes emerging from a wash-up of the recent financial turmoil.
Australia has fared best among the Western countries, with its unemployment rate at only 5.3% and falling. But does this now mean you'll start to see wage pressures emerging?
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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 dollar from its [...]
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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.
ith low inventories and industry capacity-use levels up over 80% once more ... you could [...]
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How Interest Rates Affect
the Property Markets
Posted on 17. Nov, 2009 by Chris Lang.
If the Reserve Bank (RBA) further increases rates in December, you will start to see the housing market plateau in the New Year. However, this should have little or no immediate effect on the rest of the economy.
n all discussion about Australia's improving economy and retail spending, there has been little regard placed upon the [...]
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Thankfully, The RBA Displayed
The Courage of Its Convictions
Posted on 08. Oct, 2009 by Chris Lang.
Clearly, many households and first home buyers will have reason to complain ... but someone had to step up and show leadership. And it certainly wasn't going to be the Labor Party.
y increasing the official cash rate from 3% to 3.25%, the RBA has signalled its intention to ensure Australia's financial future remains [...]
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Keep Your Eye on Inflation!
Posted on 28. Jul, 2009 by Chris Lang.
Australia is supposed to be in the midst of a recession; and yet, underlying inflation is still running at 4% per annum.
If that's the best we can do ... what levels will inflation finally reach, once the economy moves into its recovery phase?
Strong sales have seen retailers cutting prices less than expected. And generally, other [...]
