RBA leaves interest rate unchanged

Yep,

Picked that one. Back to back would have been just too much of a break and they don't want to risk sending the economy into the R-word. They'll suck it and see for a while and talk up the prospect and maybe act if the fundamentals don't start to look good again.

This crystal ball gazer reckons the next review stands a pretty big chance of an increase as I don't think those fundamentals are gonna improve without further intervention.

Ciao,
MW
 
Economists: second rise now unlikely

From SMH - I've editted it heavily....

Economists: second rise now unlikely

April 6, 2005 - 10:22AM




The Reserve Bank of Australia has left interest rates unchanged at 5.50 per cent and is unlikely to move them later this year, economists said today.

...

TD Securities chief economist Stephen Koukoulas said the decision was a realisation by the RBA that it has made an error in judging the state of the economy.

...

He said the RBA was unlikely to lift rates again later this year.

...

"There is still a risk of a 25 basis point hike in May if we see a strong labour force survey tomorrow and a pick-up in first quarter CPI.

"Nonetheless, it would appear that the RBA is now going to be much more data driven, and as such there is a chance that rates have already peaked at 5.50 per cent.

...

Mr Blythe said policy makers may also have in mind the depressing influences of higher petrol prices.

"We noted last week that the average household is spending almost $150 per month on petrol at present," he said.

"This spend is up by $16 over the past three months, equivalent to a 25

...

Mr Blythe said the RBA would pause for an extended period if it pushed the cash rate to 5.75 per cent in May.
Click to expand...
 
I downloaded historical standard mortgage rates from the RBA site. Very interesting, especially if you plot it against the Sydney growth rates. Sydney growth went nuts (20%+) from '86 to '90.
 

Attachments

  • RBA historical Mortgage Rates Data.xls
    82.5 KB · Views: 133
The RBA are smarter than I gave them credit for.

I was hoping they would like it alone as I reckon these things take 6 months to kick in.

I seriously thought they would up it another .25% which just might have been enough to keep XBenX happy as we plunge into R.

Enjoy the day
quoll

PS I'm working from home today and it's a beautiful day. :D
 
sentiment seems to be changing - perhaps the dreaded R is now beyond the control of the RBA or the govt. Too little too late. Will be interesting to see if the govt does have the courage to push thru major reforms to get the supplyh side of the economy into gear.
 
Mr Mac got us through some hairy times with some nice moves previously (think Asian Crisis)

Any commentator who has been bagging the RBA has a short memory or just wants some press.

Ive got some faith that he still has at least one trick left in his bag before he goes.

That doesnt mean no recession, we are after all still subject to economic cycles.
 
I'm with XBenX on his thoughts re:RBA. How anyone can think they've been anything but brilliant in their management of the economy is beyond me. As far as I can tell, they've yet to put a foot wrong and have been proven that all their decisions were the right ones so far.

I'll blindly accept their decisions until they make a big boo boo.
 
Baloo said:
I'm with XBenX on his thoughts re:RBA. How anyone can think they've been anything but brilliant in their management of the economy is beyond me. As far as I can tell, they've yet to put a foot wrong and have been proven that all their decisions were the right ones so far.

I'll blindly accept their decisions until they make a big boo boo.
Click to expand...

I agree. Very easy to bag with vested interests in mond.

Peter 147
 
You must log in or register to reply here.

Similar threads

L
Interest Rates Keep Falling (Even if Cash Rate Is Unchanged)
Replies
1
Views
1K
Lord Shanghai
L
U
RBA to cut another 1%?
9 10 11
Replies
217
Views
37K
LeoT
L
L
ANZ Bank Tips 2 More Interest Rate Cuts - More Fuel For Positivity
8 9 10
Replies
180
Views
31K
euro73
E
S
Seems like rates will stay at record low for longer than we predict
2 3
Replies
45
Views
12K
BayView
BayView
U
RBA Rate Decision Leaked?
Replies
17
Views
6K
Aaron Sice
Aaron Sice
Back
Top