Consumer House Price

The Westpac-Melbourne Institute Consumer House Price Expectations Index moderated in January, all but reversing a spike in October. The Index indicated that 26.7% of respondents expect house prices to rise over the year ahead. This is a fall of 7.7pts from October, following a rise of 9.1pts between July and October. This reversal of consumer’s…

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Cash Rate

At its November board meeting today, the Reserve Bank decided to hold the cash rate steady at 3.25%. “Further effects of actions already taken to ease monetary policy can be expected over time. The Board will continue to monitor those effects, together with information about the various other factors affecting the outlook for growth and…

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housing market

May’s RBA board meeting minutes outline the rationale behind their 50bp reduction of the cash rate. The minutes note that the domestic economy had been growing at a modest rate in early 2012 however, the activity varied across industries. The mining sector remains strong with a number of large projects underway and on the drawing board.…

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RBA Cash Rate

In the Reserve Bank’s April board meeting today, the cash rate was left on hold at 4.25%. This was in line with economists’ expectations, but there is growing support for an easing in the cash rate based on recent data such as poor dwelling starts and retail sales.The board pointed to a potential downward movement,…

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HIA

In a one page bulletin produced last week, the HIA called for interest rate cuts and supply side reforms to arrest the on-going decline in residential construction activity in Australia. The HIA represents the construction industry and by proxy has a vested interest in construction activity; however there is growing evidence of supply side problems with concerns…

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RBA Minutes

Much to the surprise of most economists, the RBA kept the cash rate steady in February. Information available since the December meeting confirmed that economic  conditions in Europe were weakening late last year, with significant downside risks. In line with this, most forecasters have lowered their forecasts for  world GDP growth this year to a below trend…

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Investment Boom

In his speech today to the Committee for Economic Development of Australia, RBA Deputy Governor Philip Lowe gave some interesting commentary on recent developments within the Australian economy. Specifically interesting were his comments regarding the indirect effects of the investment boom in the resource sector:

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Cappuccino Price Index

For the uninitiated, the Cappuccino Price Index (CPI) monitors the price of espresso coffee in Australia. In their own words “Cutting through the noise of oil prices, inflationary trends, exchange rates, and The All Ords we talk about what really matters – the price of the cup of coffee.” It’s an interesting niche way to…

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