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

 


Reserve Bank of Australia keeps key rate at 2.5%

Reserve Bank of Australia keeps key rate at 2.5%, signs of growth won't stir inflation

June 3 (BusinessDesk) - The Reserve Bank of Australia has kept its cash rate unchanged at 2.5 percent, as expected, and said while it is detecting signs of growth in the economy, including stronger resource exports, it won't be enough to stoke inflation.

Governor Glenn Stevens released a statement on the bank’s monetary policy decision that is broadly unchanged from its position at the start of May, reiterating that inflation is expected to remain consistent with its 2 percent to 3 percent target over the next two years.

"The economy grew at a below-trend pace in 2013 overall, but growth looks to have been somewhat firmer around the turn of the year," Stevens said in a statement. "This has resulted partly from very strong increases in resource exports as new capacity has come on stream, but smaller increases in such exports are likely in coming quarters."

"Moderate growth has been occurring in consumer demand and a strong expansion in housing construction is now under way," he said. "At the same time, resources sector investment spending is set to decline significantly."

The statement comes after government figures showed retail sales rose 0.2 percent, seasonally adjusted, in April, against expectations of 0.3 percent growth, while private sector figures yesterday showed dwelling prices fell by the most in almost 5 1/2 years in May.

Stevens' statement is broadly similar to what he said last month, repeating that growth in wages has "declined noticeably" and that it would be some time before unemployment declines consistently.

"Credit growth has picked up a little. Dwelling prices have increased significantly over the past year, though there have been some signs of a moderation in the pace of increase recently," he said.

The Australian dollar recently traded at 92.63 US cents, up from 92.51 cents immediately before the statement. The kiwi dropped to 91.26 Australian cents from 91.42 cents just before the RBA statement.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news