Friday, 13 December, 2019
  • Economy
  • The RBA signals its discomfort with the rising Australian dollar

The RBA signals its discomfort with the rising Australian dollar

The RBA signals its discomfort with the rising Australian dollar The RBA signals its discomfort with the rising Australian dollar
Debra Rodriguez | 03 August, 2017, 00:55

He said Dr Lowe's statement "effectively says that a stronger Australian dollar amounts to a de facto monetary policy tightening which threatens the RBA's growth forecasts".

He said Dr Lowe's reference to higher commodity prices against the backdrop of expected weaker terms of trade also indicated the RBA was unconvinced a recent bounce in commodity prices was sustainable. It would also cause the progress in economic activity and inflation to be slower than predicted.

'The higher exchange rate is expected to contribute to subdued price pressures in the economy.

The Reserve Bank of Australia has unveiled its decision on interest rates following its monthly board meeting.

Since the start of this year the Australian dollar is up almost 5% against the USA dollar - largely, the RBA noted, a result of weakness in the U.S. currency. Investors in residential property are facing higher interest rates.

"With headline inflation tracking slightly below the 2 to 3 per cent target range, labour markets tightening and the economy continuing to grow, albeit at a pace below trend, the chances of a rate cut appear to have diminished", he said.

India's central bank cuts key lending rate to 6 percent
As a result, the RBI said it wanted more confidence that inflation would move "close to 4 percent on a durable basis". The Committee was formed during a year ago on the lines of Federal Open Market Committee in the US.

But HSBC Australia chief economist Paul Bloxham - who is expecting a cash rate hike early in 2018 - disagreed that the currency's strength would stay the RBA's hand.

There had been speculation in the mainstream media that interest rates would need to rise sooner rather than later, particularly as house prices in Sydney, Melbourne and Canberra posted double-digit growth year-on-year, according to the CoreLogic Hedonic Home Value Index. Some pick-up in non-mining business investment is expected.

In his statement, Dr Lowe said that although retail sales had picked up recently, "slow growth in real wages and high levels of household debt are likely to constrain growth in spending". Growth in housing debt has been outpacing the slow growth in household incomes.

They're expected to show continued solid jobs growth in the U.S. with 180,000 new jobs created in July and a fall in the unemployment rate, coupled with subdued wages growth. In some other markets, prices are declining. A factor working in the other direction is increased competition from new entrants in the retail industry.

RBC capital markets are bullish the Aussie versus the Pound as, "Absent any shift in rate expectations, our default position remains to buy dips in AUD as the outright yield continues to draw in investors while volatility and global yields remain historically low".

The RBA also remained fairly neutral in its outlook for future growth as it said "forecasts for the Australian economy are largely unchanged", which would suggest that the bank's quarterly Statement on Monetary Policy (SoMP) on Friday will not deviate greatly from the RBA previous forecast of 3% annual growth.

GM, Fiat Chrysler July sales plunge as US auto slump persists
India's central bank cuts key lending rate to 6 percent

Recommended

GM, Fiat Chrysler July sales plunge as U.S. auto slump persists GM, Fiat Chrysler July sales plunge as U.S. auto slump persists Ford also cut fleet sales by 26 percent, and had to stop sales of its Transit commercial van for a few weeks for a recall. Ford's sales excluding heavy trucks declined 7.4 percent, as passenger-car deliveries dropped 19 percent.

LG V30 will go on sale from September 28 in the US LG V30 will go on sale from September 28 in the US Similar to the V10, a second, supplemental display is located at the top of the device to the right of the front-facing camera. Now, with the LG V30 , according to rumours we can expect a crisper OLED display instead of its traditional LCD displays.

US Slaps Sanctions on Venezuelan President Maduro US Slaps Sanctions on Venezuelan President Maduro He said Sunday's vote gave Maduro "less legitimacy, less credibility, less popular support and less ability to govern". Maduro is the fourth head of state sanctioned by the U.S.

Google Voice 5.3 update brings Multi-select messages and more Google Voice 5.3 update brings Multi-select messages and more In short it means that there were 5 billion active Android devices at some point of time. It will be showcased under a special section on the " Play Store ".

Varied Analyst Comments On AK Steel Holding Corporation (AKS), Achaogen, Inc. (AKAO) Varied Analyst Comments On AK Steel Holding Corporation (AKS), Achaogen, Inc. (AKAO) Raymond James Financial Services Advisors Inc. raised its position in AK Steel Holding Corporation by 20.9% in the fourth quarter. Following the completion of the purchase, the director now directly owns 21,872 shares in the company, valued at $436,127.68.

At least 6 hurt after van hits crowd in LA At least 6 hurt after van hits crowd in LA A fire department spokesperson says four people have been taken to a hospital and two others were treated at the scene. KTLA-TV reports that a 44-year-old man was rushed by first responders to hospital in a critical condition.

Kathy Griffin Shaves Her Head To Support Sister Fighting Cancer Kathy Griffin Shaves Her Head To Support Sister Fighting Cancer On Friday, she tweeted that she's "no longer under federal investigation" and that she has been "completely exonerated". Kathy shaved her head to show support for her sister, Joyce , who is battling cancer , the Daily Mail reported.

486 suspects on trial in key case of failed Turkish coup 486 suspects on trial in key case of failed Turkish coup Numerous 486 suspects face life terms in prison for crimes that include murder and attempt to assassinate Erdogan. Anyone convicted is expected to get life imprisonment; the death penalty was abolished in Turkey in 2004.

Swimmer Missing Off Smith Point Beach A witness told ABC7: "We called some help, we called the police and said there's still a girl in the water". Monday night. 'Suspending a search is always a hard decision and it's something we don't take lightly'.

The fine print behind Microsoft's new Surface financing plan, Surface Plus The fine print behind Microsoft's new Surface financing plan, Surface Plus Microsoft just announced a new financing option for Surface Laptops, Surface Pro 2017s, Surface Books and Surface Studios. Surface Plus has been launched exclusively for the United States and it will be available starting today.

Qatar accuses Saudi Arabia of 'politicising' Hajj over pilgrim restrictions The four states have cut air and sea links with Qatar and sanctioned dozens of groups and individuals. They were created amid signs of easing of the Gulf standoff following the visit to the region by U.S.

Wisconsin governor defends $3 bln deal for Foxconn plant Wisconsin governor defends $3 bln deal for Foxconn plant Foxconn was exploring investments in seven states including Illinois, Indiana, Michigan, Ohio, Pennsylvania and Texas. Walker said he would convene a special session of the Wisconsin Legislature to address the Foxconn incentive package .

US, Overseas Airlines Enhance Foreign Airport Security US, Overseas Airlines Enhance Foreign Airport Security As of today, the ban has been removed in full for all ten airports and nine airlines included in the original travel restriction . And Secretary Kelly says terror organizations will continue to try to beat any new security measures that are put in place.

Vikings finalizing 5-year deal with Xavier Rhodes Vikings finalizing 5-year deal with Xavier Rhodes The new contract includes $41 million guaranteed and pays more than $42 million over the first three years , according to ESPN. The Vikings are also discussing contract extensions with defensive tackle Linval Joseph and linebacker Anthony Barr.

India Vs Sri Lanka 1st Test Day 3rd India Vs Sri Lanka 1st Test Day 3rd Since there's a lot of time remaining for the action, the players of Team India made a decision to blow some steam off. Debutant Danushka Gunathilaka was out for two, hitting Umesh Yadav straight to Cheteshwar Pujara at square leg.