RBA Governor Stevens Comments
April 21, 2009 by Danish FX · Leave a Comment
RBA GOVERNOR STEVENS: AUSTRALIA’S ECONOMY IS IN RECESSION; SEES SIGNS OF RECOVERY IN CHINA
- Terms of trade to fall but unlikely to reverse recent years’ gains
- Long term economic prospects remain good
- Global economy is in much worse state than in 2001-02 recession
- Effects of monetary, fiscal stimulus to come through for some time yet
- Global growth to be lower than in prior decade for some time
Reserve Bank of Australia Cuts Interest Rates by 25 Basis Points
April 7, 2009 by Danish FX · Leave a Comment
The RBA has cut Interest Rates by 25BPS down to 3.00% from the previous 3.25%. No change from 3.25% was expected.
- Board noted there was scope for modest rate adjustment
- Sees significant support to domestic demand in period ahead
- Capacity utilization expected to fall in 2009
- Demand for credit is weak, labor demand is weakening
- Impact of global stimulus not yet discernible, but should contain downturn over the rest of 2009
- Medium term inflation outlook likely to be lower than in prior 2 years
Reserve Bank of Australia’s Debelle on the Wires
March 31, 2009 by Danish FX · Leave a Comment
RBA’s Debelle: Disruptions in global markets undermine impact of policy stimulus at home; restoring financial confidence is necessary for global recovery
- Money market spreads are below crisis period average
- Sees less demand for term loans but will continue to offer them
Reserve Bank of Australia Financial Stability Review
March 26, 2009 by Danish FX · Leave a Comment
RBA Financial Stability Review: Banking system weathered financial crisis better than others, face tougher environment than in many years as problem loans rise
- Debt guarantees helped boost banking balance sheets; Banks offering credit at accommodating terms
- Housing credit still expanding
- Further softness in housing market still possible, but sector is not as vulnerable as in other economies
- Note: RBA’s Stability Review is published on a semi-annual basis
RBA’s Broadbent on the Wires
March 18, 2009 by Danish FX · Leave a Comment
RBA’s Broadbent: Sees Australia less affected by world events but its recovery still depends on a ‘global rebound’; more stimulus may be required
- Notes China is making the correct policy decisions
- US financial system is in need of a ‘lot of rebuilding’
Reserve Bank of Australia’s Battellino on the Wires
February 20, 2009 by Danish FX · Leave a Comment
RBA’s Battellino: Has no concerns about Australia’s sovereign rating; Companies are having trouble raising debt
- Says Australia’s federal govt also in strong position to borrow
Reserve Bank of Australia Governor Stevens on the Wires
February 10, 2009 by Danish FX · Leave a Comment
RBA Governor Stevens: Central banks must work with unconventional tools as rates cuts not working normally
- Says central banks must revisit asset price problem
- World cannot retreat from risk taking
