Digital Finance Analytics (DFA) Blog
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The Treasurer has now (finally) released the proposed timetable for implementation of the recommendations from the Royal Commission made back in February. It is entitled “Restoring Trust In Australia’s Financial System”, but of course the big question is, will these measures once implemented really get to the heart of the issue – we doubt it. … Continue reading “Banking Royal Commission Implementation Plan Revealed”
Courtesy of Philip Lowe, speaking in Darwin tonight. Savers do not even warrant a mention… more the shame! As I am sure you are aware, this morning the Board decided to reduce the cash rate by a quarter of a percentage point to 1 per cent. This follows a similar adjustment last month. This easing of monetary … Continue reading “RBA’s Explanation For The Cut”
The RBA has released their statement today. At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.00 per cent. This follows a similar reduction at the Board’s June meeting. This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term … Continue reading “RBA Rate Decision – Cut Again”
The Official Cash Rate (OCR) remains at 1.5 percent. Given the weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives. Domestic growth has slowed over the past year. While construction activity strengthened in the March 2019 quarter, growth … Continue reading “NZ Reserve Bank Holds Cash Rate”
In the Phase 2 document released today, Deposit Insurance, funded by a bank levy is proposed. Unlike the Australian $250k scheme (which is not activated until the Government says so, and is taxpayer funded initially), the NZ scheme is for a lower amount with a protection limit in the range of $30,000 – $50,000. Implementation … Continue reading “NZ Reserve Bank Says Deposit Insurance To Happen”
RBA Governor Philip Lowe spoke at CEDA today. He signals more rate cuts, their potential limited impact and the need for other strategies to move towards higher levels of employment. Underemployment makes an entrance – finally! We have been talking about this for years. Today, I would like to explain why this is so and … Continue reading “RBA Penny Drops On Underemployment (Just A Decade Late)”
The RBA released their minutes today which clearly signals further rate cuts ahead as they drive toward to goal of 4.5% unemployment – the latest magic figure when wages will start to rise. Savers be dammed, to try and get household spending up. International Economic Conditions Members commenced their discussion by noting that the data … Continue reading “RBA Minutes – 4.5% Unemployment Target Means More Rate Cuts Ahead [Never Mind Savers!]”
The Reserve Bank of New Zealand has released an important statement on the new approach they are going to adopt in policy setting. The focus will be on improving wellbeing. In addition they are expanding their dna to avoid group think. This follows their recent moves to lift bank capital. There is so much here … Continue reading “Visionary RBNZ Shows Up RBA”
Governor Lowe explains. In summary: Expect more cuts. Banks should pass on the cuts. Borrowers will benefit more than savers in the interests of the economy. The exchange rate will fall. Spare capacity in the economy needs to be utilised. At its core, today’s decision was taken to support employment growth and to provide greater … Continue reading “The RBA On The Cash Rate Cut”
The RBA has reduced the cash rate by 0.25% today as expected. Further signs of a weakening economy, exposed to the international risks which are rising. Given the BBSW has moved towards the banks in recent times, there is no excuse not to pass the full cut to existing borrowers. The question is, will they? … Continue reading “RBA Cuts As Expected”