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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news