Posts tagged as:

rba

RBA Rate Cut… A Surprise?

by Kris Sayce on November 5, 2008

According to the papers, yesterday’s 0.75% interest rate cut by the Reserve Bank of Australia (RBA) was a surprise. Not according to the markets it wasn’t. As we pointed out on Monday, there was a 79% chance the RBA would cut the Cash Rate to 5.25%.

Now we wonder whether the market is starting to get a little too excited about future rate cuts. It has a habit of doing that sometimes.

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Reserve Bank of Australia’s (RBA) Rate Cut Didn’t Last Long

by Kris Sayce on October 9, 2008

Is it safe to come out yet? Yesterday the Australian market lost 5%. The euphoria from the Reserve Bank of Australia’s (RBA) rate cut didn’t last long.

The Thunderbirds at the central banks in the US and Europe thought they would try as well. It was an attempt at a coordinated global rescue. But it only achieved the same result. The US Federal Reserve cut by 0.5% to 1.5%. The European Central Bank (ECB) cut by 0.5% to 3.75%. And the Bank of England (BoE) cut its rate from 5% to 4.5%.

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The RBA Tells You What You Already Know

by Allan Robinson on August 12, 2008

The Reserve Bank released its Statement on Monetary Policy for August yesterday, reader. It took 25,254 words, 76 graphs and 17 tables for our monetary authority to tell you everything you already know about Australia’s economy and financial markets.

Only 28 of those words meant anything to anyone.

“On the assumption that the subdued demand conditions are likely to continue, scope to move to a less restrictive monetary policy stance in the period ahead is increasing.”

It all boils down to that. The RBA only really needed three words: “interest rate cut”. That would’ve done it.

The rest of the publication is a recap.

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