Tag Archives: rba
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 […]
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Do You Remember Back Then … ?
Posted on 05. May, 2009 by Chris Lang.
In an earlier article, I gave you a bullet-point comparison of how things are NOW … compared to the early 1990s … in relation to Commercial property.
Anyway, here are some very revealing graphs — based upon figures from the RBA.
Back in the 1990s, the banks were burdened with a heavy corporate exposure; and interest rates […]
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Why Interest Rates Will Start To Soar!
Posted on 01. Apr, 2009 by Chris Lang.
If you’re like most people you are probably trying to second guess whether or not the RBA will reduce official interest rates by 0.25% or 0.5% over the next month or so.
So, should you fix your rates on your Commercial property now, or wait a while?
Realistically, you need to study what is actually happening around […]
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Taking Stock of Commercial Property
Posted on 03. Feb, 2009 by Chris Lang.
As I mentioned in a recent mail to some Clients, it’s been surprising how few quality properties have been forced onto the market — given the difficulties caused by current global turmoil.
You’ve heard so much lately as to how bad things are. But let’s undertake a quick comparison for Australia — between 1990 […]
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Year-end Recap, on Where Things Stand!
Posted on 08. Dec, 2008 by Chris Lang.
During October, business borrowing actually expanded by a healthy 1.1 per cent — to be 13.2 per cent for the 12-month period.
However, business debt and credit cards are considered more risky than home loans. Therefore, banks will raise their risk premium in these two areas; and not lower those lending rates, as much as […]
