Friday, 20 October, 2017

RBA keeps the cash rate on hold in August

Table 12 Yen and Dollar Mildly Higher as Markets Consolidate, Eurozone Core CPI Hit ...
Preston Stone | 03 August, 2017, 00:18

While it has been many months since the RBA said anything about the dollar in its policy statement, it has repeatedly warned in other statements that a stronger currency would push down employment and make it harder for the economy to recover from the global financial crisis.

The main event this week is the Reserve Bank of Australia (RBA) rate meeting out at 5.30 BST on Tuesday morning, August 1.

Dr Oliver said it's unlikely there will be a change in Australian interest rates by the RBA because "the bank's read on the economy is too mixed to do anything".

Tim Lawless, head of research at CoreLogic, said higher mortgage rates against a backdrop of high household debt was knocking some of the wind out of the housing market without the Reserve Bank needing to act.

In recent months, mortgage rates have been edging higher, especially for investors and interest-only loans.

"Although RBA would like to cut rates to take upward pressure off the Australian dollar, it can't cut rates as it fears re-stoking the residential property market". They expect unemployment rate would slightly go down over the next couple of years from the current 5.6 percent.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 2.72 percent, the yield on 15-year note flat at 3.02 percent and the yield on short-term 2-year traded almost 1 basis point lower at 1.81 percent by 03:50 GMT. Headline inflation rates have declined recently, largely reflecting the earlier decline in oil prices. The economy is nearly out of the reversal of mining investment that had been weakening growth of late - another bonus. However, wage growth remains low and this is likely to continue for a while yet, the bank added.

There is also likely to be a short-term pick up in inflation, as measured by the consumer price index, as higher electricity and tobacco prices flow through. Lowe said that growth in housing debt has been beating the sluggish climb in household incomes. But Dr Lowe noted that "a factor working in the other direction is increased competition from new entrants in the retail industry".

Finally, CACIB notes that the USD's recent downtrend remains the key theme in the FX markets and price swings around the trend will remain the key source of FX volatility. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time. Rent increases remain low in most cities.

Recommended

Microsoft announces Skype users can now send money in conversations using PayPal Microsoft announces Skype users can now send money in conversations using PayPal To use this new feature, all you need to do is head over to a particular chat from the "recents" list or the search. Microsoft and PayPal today announced a partnership that enables peer-to-peer payments on the Skype mobile app .

Philippines | Police say Duterte's crackdown to target more drug lords Philippines | Police say Duterte's crackdown to target more drug lords In both the Espinosa case and the Parojinog raids, police and CIDG agents served the search warrants before dawn. Mayor Parojinog was one of the local government officials named in President Rodrigo Duterte's narco-list.

Finance Your Next Surface Hardware Purchase with the Surface Plus Program Finance Your Next Surface Hardware Purchase with the Surface Plus Program For an additional $8.25 per user per month, businesses can enjoy the ultimate productivity experience on Surface. The number of devices under the agreement can also change during the middle of the term as well, the post said.

CNN panel praises Trump for taxpayer-funded job creation in Wisconsin CNN panel praises Trump for taxpayer-funded job creation in Wisconsin Tom Corbett announced that Foxconn planned to invest $30 million in a "high-end technology manufacturing facility" with 500 jobs. It's unclear where such plants would be located, how many people they would employ and which products they would produce.

Acal plc (LON:ACL) Receives "Buy" Rating from FinnCap Acal plc (LON:ACL) Receives The target price would suggest a potential downside of -2.83% from United Utilities Group PLC (LON:UU)'s previous stock close. The Perritt Capital Management Inc holds 295,550 shares with $6.65 million value, down from 316,837 last quarter.

Iran Says US Navy Vessel Fired Warning Shots Iran Says US Navy Vessel Fired Warning Shots The measure would also apply sanctions to the Revolutionary Guard and enforce an arms embargo. In this case, the aircraft carrier Nimitz was the lead ship.

Donald Trump Encourages Police To "Not Be So Nice" When Arresting Suspects Donald Trump Encourages Police To The additional immigration officers are so "we can eliminate MS-13 and root out the criminal cartels from our country", Mr. Then, something unusual happened, relative to most speeches, though not, perhaps, to this president.

Japan's frozen beef safeguard triggered in first quarter Japan's frozen beef safeguard triggered in first quarter USA exports of beef and beef products to Japan totaled $1.5 billion a year ago , making it the United States' top market.

ACA Repeal Bill Fails Badly In Senate ACA Repeal Bill Fails Badly In Senate Susan Collins of ME and Lisa Murkowski of Alaska were the only two Republican senators who did not vote yes on the measure. Vice President Mike Pence breaks a tie in the Senate vote to proceed with debate on a health care bill.

Twitter Stock Plummets After Reporting ZERO New Users for 2nd Quarter Twitter Stock Plummets After Reporting ZERO New Users for 2nd Quarter In the United States, Twitter's average monthly active users fell to 68 million from 70 million in the first quarter . Twitter reported adjusted earnings per share of 8 cents, above the FactSet consensus of 5 cents.

Apple ordered to pay $506 million to Wisconsin university in patent dispute Apple ordered to pay $506 million to Wisconsin university in patent dispute Unsurprisingly Apple is now looking to appeal Conley's ruling, but so far they have yet to publicly comment on it. Conley said he would not rule in that case until Apple has had an opportunity to appeal the 2015 jury verdict.

New James Bond film in the works New James Bond film in the works It will be number 25 in the franchise about the MI5 spy, but it is still not clear if Daniel Craig will reprise his main role. When is the new James Bond film out in the UK? The movie will be produced by Eon's Michael G.

Ryan Murphy Previews Sarah Paulson and Evan Peters' Characters in AHS: Cult Ryan Murphy Previews Sarah Paulson and Evan Peters' Characters in AHS: Cult Murphy also revealed via Twitter that the show will take place in MI over 11 episodes during the Presidential Election. The two played husband and wife in last year's Roanoke installment.

China to India: Ready to Defend Sovereignty at All Cost China to India: Ready to Defend Sovereignty at All Cost Over the period China has squarely blamed India for provocation and called to take practical measures to correct its wrongdoing. Earlier, India has said that both sides should pull back troops to discuss the matter through diplomatic channels.

Charlie Gard's parents withdraw appeal Charlie Gard's parents withdraw appeal Doctors at Great Ormond Street Hospital had said the treatment wouldn't help and could cause the child pain. Hirano believes there is at least a 10-percent chance that his treatment could improve Charlie's condition.