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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news