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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news