forex trading outlook today - Australian Reserve Bank cuts interest rates to 4.5% : The Reserve Bank of Australia has cut interest rates for the first time since April 2009. The move comes in a bid to boost growth amid fears that the global downturn might begin to take its toll on the Australian economy.
Correspondence released by the RBA suggested that the Australian economy posted "moderate growth overall" but expect it to decline.
The strong performance of the mining sector, which has maintained inflationary pressures so far this year, is offset by a slowdown in retail and housing markets. New home sales fell to their lowest level in over a decade in September.
The Reserve Bank have long maintained their priority to use interest rates as a measure to keep inflation under control, but concerns about inflation were assuaged by benign figures for the third-quarter, allowing for a modest cut in rates.
The consequent cut is likely to bring relief to households, builders and retailers in the face of slowing consumer activity, and it is expected to boost demand leading up to the important Christmas trading period.
Whether this proves successful remains to be seen. Disciplined consumers have set their stall to reduce debts rather than spend, and to exploit any rate cuts to make larger payments off their mortgages
Correspondence released by the RBA suggested that the Australian economy posted "moderate growth overall" but expect it to decline.
The strong performance of the mining sector, which has maintained inflationary pressures so far this year, is offset by a slowdown in retail and housing markets. New home sales fell to their lowest level in over a decade in September.
The Reserve Bank have long maintained their priority to use interest rates as a measure to keep inflation under control, but concerns about inflation were assuaged by benign figures for the third-quarter, allowing for a modest cut in rates.
The consequent cut is likely to bring relief to households, builders and retailers in the face of slowing consumer activity, and it is expected to boost demand leading up to the important Christmas trading period.
Whether this proves successful remains to be seen. Disciplined consumers have set their stall to reduce debts rather than spend, and to exploit any rate cuts to make larger payments off their mortgages
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