Retail sales jumped in the month of October, increasing by 0.7 per cent - which was well above expectations. The ABS data came out hours before the Reserve Bank of Australia decided to cut rates by 100 basis points, reducing the cash rate to just 4.25%. “The Australian economy has been more resilient than other advanced economies, but recent data nonetheless indicate that a significant moderation in demand and activity has been occurring,” RBA Chairman Glenn Stevens advised. “With... ...Read more »
Peak retail industry body the Australian Retailers Association (ARA) has applauded the Reserve Bank of Australia’s (RBA) decision to further cut the cash rate by .75 percentage points today. The news of a rate cut is further positive news for the food retail sector, following the release of trend figures for September showing food retailing up 0.6 per cent. Cafes and restaurants, among the hardest hit by the downturn, made a slight comeback - with trend figures climbing 0.2 per cent. ARA Executive... ...Read more »
Inflation data for the year to September was released by the ABS today, with the 5% increase the greatest since 1995 (excluding the period when the GST was introduced). The inflation rate is now well above the 2-3% target range of the RBA but is not expected to stop the central bank cutting interest rates at their next meeting in November. Food inflation for the September quarter was at 1.4%, bringing the yearly rate up to 3.4% - well below the figure seen earlier this year when commodity... ...Read more »
The Reserve Bank of Australia has delivered some welcome news to businesses beginning to struggle as economic fears grip the world by reducing the official cash rate by 1% to 6.0%. The 100 basis point cut announced this afternoon was double the 50 basis point reduction anticipated by most economists. It remains unclear the true impact of the cut on borrowers, as banks battle to raise funds in overseas money markets. The shock decision was due to financial markets taking a “significant turn... ...Read more »
The October 2008 ACCI (Australian Chamber of Commerce and Industry) Survey of Investor Confidence shows business trading conditions have continued to deteriorate in the September quarter. Business’ own conditions and profits are at their lowest level in six years, sales have fallen to below their five year average and future expectations for these measures are down further still. The slowing global and domestic economy has also reduced the expected rate of growth for own business employment,... ...Read more »
The Reserve Bank of Australia today reduced the cash rate by a quarter of a percentage point to 7.00 per cent, providing some welcome relief to retailers. Leading retail industry bodies the Australian National Retailers Association and the Australian Retailers Association have both warned, however, that it will take time for consumer confidence to return. “… nobody should assume that Australians will race out tomorrow and start spending up,” ANRA CEO Margy Osmond said. “This... ...Read more »
The ACCI Small Business Survey highlights that small business conditions have continued to deteriorate over the June 2008 quarter with this index falling to 43.4 - its lowest level since this Survey began in December 1996 and over 10 points below its five year average of 54.8. In the midst of continued moderation in employment growth, wage growth moderated slightly but non-wage labour costs continued to increase. The ACCI Small Business Survey also found that: • Business expects a further decline... ...Read more »
The June quarter Commonwealth Bank - ACCI Business Expectations Survey shows a significant fall in business confidence and reported business conditions. Business confidence fell to its lowest level since the survey began in 1994 and general business conditions were at the lowest level for five years. The news comes on a day when the Reserve Bank of Australia has decided to leave the cash rate steady at 7.25%. The RBA decision was expected but, unlike previous months, their primary concern now appears... ...Read more »
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 »