Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The US Federal Reserve kept rates on hold in today’s announcement. It also underscores its “patience” in terms of future movements, which is central bank speak suggests the current tightening cycle has ended for now. Plus we suspect the rate of QT will slow too, providing more support to the US economy. They are prepared … Continue reading “FED Holds Benchmark Rate, “Is Patient””
The ABS reports that the Consumer Price Index (CPI) rose 0.5 per cent in the December quarter 2018, which follows a rise of 0.4 per cent in the September quarter. This means that inflation, on the official measures remains BELOW the RBA’s target range of 2-3%, at 1.8% and may suggest more of a bias … Continue reading “CPI rose 0.5 per cent in the December quarter 2018”
In our latest video, I caught up again with Tony Locantro from Alto Capital in Perth. We discussed the property market, including a focus on the local Perth market and Sydney. Tony took the bet with The Kouk (the one I passed on following 60 Minutes). https://www.altocapital.com.au/ Tony is also active on Twitter.
The office of the Treasurer has revealed that the final report will not be released on Friday. According to the release, the Australian Government will still receive the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry on Friday 1 February 2019. However, it will not be released publicly … Continue reading “Royal Commission Report Public Release Delayed”
APRA has provided a justifying summary of their actions relating to home lending regulation, but warns that “many of the underlying structural risks associated with high household debt remain and will do so for some time”. Despite this, they have chosen to keep the countercyclical capital buffer at zero. Housing credit growth is slowing, but … Continue reading “APRA Holds Countercyclical Capital Buffer; Releases Assessment Of Measures To Lift Home Lending Standards”
The Financial Markets Authority (FMA) and Reserve Bank of New Zealand (RBNZ) have completed their joint review of 16 New Zealand life insurers. This review follows the regulators’ bank review published in November 2018. The findings appear to mirror the Australian Royal Commission, with a focus on shareholders rather than customers – sounds familiar? In … Continue reading “NZ Life Insurance Sector Found Wanting”
ASIC has found auditors may not be guaranteeing financial statements are free of misinformation, with a review by the watchdog showing a lack of justification for greenlighting reports across a number of audit areas; via InvestorDaily. The ‘Audit Inspection Report for 2017–18’ showed auditors at the six largest auditing firms did not obtain reasonable … Continue reading “ASIC calls audit quality into question”
Today John Adams and I launch our new YouTube channel – In The Interest Of The People. In our first episode of ‘In the Interests of the People’, Adams and North discuss what are the obligations of Federal Parliamentarians to disclose whether an economic crisis is coming and whether they can be trusted to tell … Continue reading “In The Interests Of The People – Adams/North New Channel Launched”
Welcome to the Property Imperative weekly to the twenty sixth of January 2019, – Australia day – our digest of the latest finance and property news with a distinctively Australian flavour.
Today we discuss how banks lend, and why the idea that bank deposits limit bank lending is plain wrong and helps to explain why home prices have exploded in recent years. The correlation between home prices and credit availability are clear to see. We have updated this chart to take account of 2018 data. As … Continue reading “The Art Of Credit Creation”
