Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The RBA minutes of the 7th October meeting are out. The themes are familiar, and they continue to signal an ongoing period of low interest rates, and the importance of lending standards. Growth in the global economy was continuing at a moderate pace. Commodity prices, in particular iron ore prices, had declined over the past … Continue reading “RBA Still On The Low Rate Trip”
Speaking at the Kenilworth Chamber of Trade business breakfast event Andrew Haldane, the Chief Economist of the Bank of England, discussed developments in the labour market, and the implications for monetary policy in the United Kingdom. His perspective is important and relevant in the Australian context. The main messages of Andrew’s speech are: In June, … Continue reading “The UK’s “Twin Peaks””
The results from the National Australia Bank’s latest residential property survey shows that foreign buyers are flocking to buy Australian property, snapping up one out of every six new homes – and that number is set to get higher. Foreign buyers were more prevalent in new housing markets in Q3. Foreign buyers accounted for 16.8% … Continue reading “Foreign Property Buyers Are Market Significant – nab”
The ABS released their much heralded employment data today for September, having warned yesterday about the seasonally adjusted sets. Australia’s seasonally adjusted unemployment rate increased 0.1 percentage points to 6.1 per cent in September 2014, as announced by the Australian Bureau of Statistics (ABS) today. The seasonally adjusted labour force participation rate decreased 0.2 percentage … Continue reading “Unemployment Up – Probably!”
ASIC today released their review of activity in the Life Insurance Industry, and finds that consumers interests are not always given priority. The $44bn industry touches superannuation, annuities, and other elements, as shown in a diagram reproduced from the report. We have previously highlighted the issues around annuities. They found that high upfront commissions are … Continue reading “ASIC Says Life Insurance Industry Needs Higher Standards”
The Bank of England (BoE) recently published their Q3 Credit Conditions Survey. This is the first edition since the recent Mortgage Market reforms were introduced, and the macroprudential controls were tabled. Looking specifically at secured lending to households they report that demand for credit has eased, and the proportion of higher loan to value loans … Continue reading “Macroprudential Bites in the UK – Bank of England”
In the just release IMF World Economic Outlook, as well as revising down growth estimates, they discuss macroprudential, highly relevant in the light of RBA comments. The main observations are: there is evidence that macroprudential can assist in manage house price growth, and credit growth. Different settings should be applied to different types of purchases, … Continue reading “IMF On Macroprudential – It Works!”
At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. Growth in the global economy is continuing at a moderate pace. China’s growth has generally been in line with policymakers’ objectives, though some data suggest a slowing in recent months. Weakening property markets there present a challenge in … Continue reading “RBA Leaves Rates On Hold, Again”
We have updated our household surveys with the results for September. This forward-looking research revealed some significant changes in sentiment amongst households thinking of transacting, and many of these changes can be traced to recent comments made by the RBA in respect of investment housing. Our approach to household segmentation and our surveys is described … Continue reading “RBA Comments On Housing Have Impact – DFA Survey”
The RBA made a statement today to the Inquiry into Affordable Housing. Several points to note: 1. They recognise the high price to income ratio we currently have, but also state that low rates make larger mortgages affordable. the ratio of housing prices to incomes is at the top of its historical range; but over … Continue reading “RBA Highlights Housing Supply Issues And Lending Regulation”