Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Australia’s central bank keeps key rate at 2.5 percent

Australia’s central bank keeps key rate at 2.5 percent, less bullish on China

April 1 (BusinessDesk) – The Reserve Bank of Australia kept its cash rate unchanged at 2.5 percent as expected, giving an assessment broadly consistent with its March statement, while noting slower growth in China and a stronger currency.

“Continued accommodative monetary policy should provide support to demand, and help growth to strengthen over time,” said governor Glenn Stevens, reiterating that inflation is expected to be “consistent with the 2 to 3 percent target over the next two years.”

“In the board's judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target,” he said. “On present indications, the most prudent course is likely to be a period of stability in interest rates. “

The central bank has continued to characterise the economy as one where investment spending in the resources sector is expected to “decline significantly” with only tentative signs of improving investment intentions in other sectors. His last statement, on March 4, came a day before government figures showed Australia’s economy grew 0.8 percent in the fourth quarter, beating estimates, amid rising household spending.

The Australian dollar traded at 92.63 US cents from 92.82 cents immediately before the announcement and has climbed more than 4 percent this year. The kiwi dollar traded at 93.71 Australian cents from 93.52 cents.

Stevens amended his comments on the Australian dollar, saying that while the currency’s decline from its highs a year ago will assist in achieving balanced growth in the economy, it would be “less so than previously as a result of the rise over the past few months” and remains high by historical standards.

Stevens also tweaked his comments about China.

“China's growth remains generally in line with policymakers' objectives, though it may have slowed a little in early 2014,” he said. A month ago he didn’t note any slowing.

“Growth in the global economy was a bit below trend in 2013, but there are reasonable prospects of a pick-up this year,” Stevens said, reiterating last month’s comments.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news