We took a break from the share market yesterday to cruise through the latest issue of the Reserve Bank’s Financial Stability Review. It’s a page turner. But it was the pretty pictures that got our attention. For example, take the picture below. It shows how the global credit binge fuelled house price booms in Spain, France, the UK, the US, and Australia. It also shows house prices cliff diving in the U.K. and the U.S.
September 26th, 2008 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "rba"
RBA Declares ‘Victory’ Over Inflation in Australia
Let’s get right to the point and suggest that Reserve Bank of Australia deputy governor Rick Battelino was talking to the banks yesterday and not anyone who lives on planet Earth, or Terra Australis Incognito, where last we heard, inflation was running at 4.5% on a yearly basis. The RBA was pretty clear in its Statement of Monetary policy that it would like to cut rates. The Aussie dollar fell in response. So why bother making the point as directly as he did yesterday?
August 15th, 2008 | Dan Denning | 2 comments | Continued
RBA Leaves Rates Unchanged, Rio Wraps Up Negotiations
The Reserve Bank of Australia isn’t moving rates up yet. The Bank left them at 7.25% after meeting yesterday in Sydney. Later this month it will review CPI data. But for now, the Bank seems satisfied that its rate-hike campaign has slowed demand in the Australian economy.
July 2nd, 2008 | The Daily Reckoning | 0 comments | Continued
Reserve Bank of Australia Tolerating Inflation
The Reserve Bank meets tomorrow to decide if Aussie consumers have slowed down their spending enough that the cash rate can be kept on hold. If you think inflation of 4.2% per year in consumer prices is acceptable-as some pundits seem to think-remember the rule of 72.
May 5th, 2008 | Dan Denning | 2 comments | Continued
RBA Buys $780 Million in Residential Mortgage-Backed Securities
The Reserve Bank of Australia bought $780 million in residential mortgage-backed securities earlier this week. It was the same day all the financial shares rallied. What does it mean? Well, it means that the RBA is trying to loosen up the Aussie mortgage market by buying residential mortgage-backed securities and owning them for much longer periods than it was previously willing to do.
April 23rd, 2008 | The Daily Reckoning | 4 comments | Continued