The official cash rate has been kept at 7.25% by the Reserve Bank of Australia. The Australian Chamber of Commerce and Industry (ACCI), Australia’s largest business organisation, has supported the decision, suggesting that the current economic environment did not provide support for a decision to increase rates. Recent ACCI surveys and official data suggest that the economy is slowing and the impact of the four previous interest rates increases may not yet have had their full flow-on impact... ...Read more »
The Reserve Bank of Australia have left the cash rate unchanged at 7.25% despite inflation being at decade highs. The RBA Board made the decision at their monthly meeting, which was held in Sydney this morning. Inflation pressure has been rising steadily and is now well above the target level of 2-3%; with March data revealing inflation of 4.2%. However, the rising food, fuel and finance costs globally have obviously concerned the RBA and, with much of the inflationary pressure external... ...Read more »
Business confidence has fallen to its lowest level since March 2001 according to the quarterly report by the National Australia Bank (NAB). The NAB survey for the March quarter showed a drop of ten points in confidence to a figure of minus four. NAB surveyed 1700 firms throughout February and March to determine the results. Interest rates and inflation have hit the disposable incomes of consumers with interest rates rising twice in the quarter and inflation increasing to decade highs at... ...Read more »
The Reserve Bank of Australia is now more likely to consider raising interest rates again in May following the release of inflation data for the March quarter. CPI rose 1.3% in the quarter, resulting in a CPI figure for the year to the March quarter of 4.2%. The figure was higher than analyst forecasts of 4% and markedly above the 2-3% level which the RBA targets, indicating that rates could rise next month. Education and health prices were the biggest contributors to the high quarterly... ...Read more »