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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news