Digital Finance Analytics (DFA) Blog
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Fitch says Australia’s ‘AAA’ rating is underpinned by an effective and flexible policy framework that has, in combination with strong net migration, supported 28 consecutive years of positive GDP growth in the face of substantial external, financial, and commodity-price shocks. A credible commitment to fiscal consolidation from a debt level that is already broadly in … Continue reading “Fitch Affirms Australia at ‘AAA’; Outlook Stable”
Dr Steven Kennedy, Secretary to the Treasury appeared before Senate Estimates today. Global economic conditions Over the past year global growth has slowed. Several major economies, notably Germany and the United Kingdom, as well as close trading partners in our region such as Korea and Singapore, have recently experienced negative quarters of growth. There has … Continue reading “The Treasury Sees An Economic Silver Lining”
The RBA minutes for October are decidedly bearish, clearly the battery in their rose-tinted specs as run down, revealing the mounting risks in the economy. Probably more risks ahead, more cuts and the proverbial QE in some form… International Economic Conditions Members commenced their discussion of global economic conditions by noting that heightened policy uncertainty … Continue reading “RBA Rose Tinted Specs On The Blink”
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 0.75 per cent. While the outlook for the global economy remains reasonable, the risks are tilted to the downside. The US–China trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans because of the … Continue reading “RBA Cuts Yet Again!”
The recent RBA Bulletin included an article “Bank Balance Sheet Constraints and Money Market Divergence“, which in summary shows that money market trades have generally not been profitable for the four major banks since the financial crisis. This is partly because debt funding costs have fallen by less than money market returns. In addition, equity … Continue reading “Mortgage Growth, The Only Game In Town”
The main message from The RBA Governor tonight on the global economy is that while it is still growing reasonably well, the risks are increasingly tilted to the downside. The main source of these downside risks are geopolitical developments in many parts of the world. These developments are creating considerable uncertainty and this uncertainty is … Continue reading “Lowe On The Economy – “Extended Period Of Low Rates Required””
The RBA released their minutes today. Clear talk of more cuts, against a weaker global scene. But holding on to households spending more as the housing sector wakens. Rates will be lower for longer as Central Banks globally cut to the max. Saved somewhat by Government spending and higher iron ore price, but small businesses … Continue reading “RBA Minutes – Rates To Go Lower…”
At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent. The outlook for the global economy remains reasonable, although the risks are tilted to the downside. The trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans due to the increased uncertainty. At … Continue reading “RBA Holds As Expected”
There is an interesting paper the Reserve Bank NZ has put out, seeking comments by 31 August. The Future of Cash Use. It was issued in June 2019. The paper describes the transition to digital alternatives, and explains some of the reasons. But what caught my eye was this section. “All members of society will … Continue reading “RBNZ Consults On Cash – And Blows A Hole In The Australian War On Cash!”
Consistent with the DFA surveys on household financial confidence the latest survey via ME Bank says: Australian households are feeling overall worse about their net wealth, jobs, income and living expenses with further significant residential property price falls over the past six months and a weakening labour market, ME’s latest Household Financial Comfort Report has … Continue reading “ME Says Household Financial Comfort Falls”