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

 

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Cyclone Cook: Round Up Of This Week’s Weather

One of the significant impacts this week was flooding due to excessive rainfall amounts. Rainfall amounts topped out at 350mm over the past 60 hours in parts of northwest Nelson, with 200mm+ measurements recorded about Coromandel Peninsula, and between 150-200mm in the Kaimai Ranges. Rainfall amounts of between 30-50mm were commonplace elsewhere. More>>

ALSO:

Earlier: Batten Down The Hatches For Cyclone Cook

Although fast-moving, Cyclone Cook will be destructive and MetService Expert Meteorologists have issued Severe Wind Warnings for the whole of the North Island apart from Northland... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news