Reserve Bank of Australia
Australian Rate Hike Smaller than Anticipated
October 4, 2022
Policymakers at the Reserve Bank of Australia helped reinforce markets’ reassessment of coming monetary restraint around the world by throttling back the incremental rise of the Official Cash Rate to 25 basis point from moves of 50 basis points at the previous four monthly reviews. The initial rate hike last May, like today’s had been […] More
Big Market Turnaround: Equity Rebound and Lower Dollar and Sovereign Debt Yields
October 4, 2022
Market expectations of how much further the federal funds target rate will be raised in the coming six months have been scaled back significantly. The catalyst has been evidence of softer U.S. demand, notably visible in yesterday’s ISM-compiled purchasing managers survey of manufacturers, which dropped 1.8 index points to a 28-month low of 50.9. Sub-indices […] More
Fifty Basis Point Central Bank Rate Hike in Australia
September 6, 2022
The Reserve Bank of Australia’s Official Cash Rate, as expected, has underwent its fourth straight monthly half percentage point increase. At a 7.5-year high of 2.35%, the new OCR level compares to 0.10% prior to an initial 25-basis point move in early May. A released statement from RBA Governor Lowe projects a further rise of […] More
Dollar and Share Price Futures Move Higher Together
September 6, 2022
The recent pattern of opposite directional movement in the dollar and U.S. share prices was not experienced today. The weighted DXY dollar index climbed 0.7% to another new 20-year high, with overnight gains of 1.3% against the Japanese yen, 0.6% versus the Australian dollar, and 0.4% relative to the Chinese yuan and Swiss franc. Sterling […] More
August 2, 2022
The Reserve Bank of Australia‘s Officials Cash Rate was raised to 1.85% from 1.35%. This was the third straight monthly hike of half a percentage point. An initial 15-basis point move from the record low of 0.10% was done in May. A released statement predicts a further rise in Australian CPI inflation to 7.75% this […] More
A Chinese Cloud Moves Through Financial Markets
August 2, 2022
The game of chicken between House Speaker Pelosi and Chinese President Xi has generated a new run by investors into safer assets. Pelosi appears determined to not scrap her Asian trip stop in Taiwan, and Xi is warning of unspecified reprisals. In overnight market action, share prices closed down 2.4% in Hong Kong, 2.3% in […] More
Reserve Bank of Australia Commences Interest Rate Up-Cycle
May 3, 2022
The Reserve Bank of Australia today engineered its first interest rate increase of any size since November 2010, raising the Official Cash Rate by a greater-than-expected 25 basis points to 0.35%. Governor Lowe released a statement that asserts officials are “committed to doing what is necessary to ensure that inflation in Australia returns to target […] More
Shortlived Equity Rally, More Inflationary Reports, and Day One of an Historic FOMC Meeting
May 3, 2022
Tech stocks had rallied in the final hour of Monday trading, but futures point to a likely drop of at least 0.5% at the start of Tuesday’s session. Share prices fell 0.9% in New Zealand, 0.6% in Taiwan, 0.4% in Australia, and are down 0.8% in the U.K., whose market had been closed for holiday […] More
Central Bank Rate Decisions in Kyrgyzstan and Australia
March 1, 2022
The National Bank of Kyrgyzstan increased its policy rate by 150 basis points to 10.0%, which is exactly double the level prior to February 2021 and at a six-year peak. The previous increase of 50 bps was done in January. A 10% the policy rate still remains a tad below on-year CPI inflation in that […] More
Uneven Manufacturing Trends Around the World
February 1, 2022
The dollar slipped 0.2% overnight on a weighted basis, losing 0.6% against the Swiss franc, 0.4% relative to the yen, Aussie dollar, Mexican peso and sterling, but just 0.2% versus the euro and 0.1% against the loonie. Stock markets in those Pacific Rim countries that were open and in Europe rallied robustly, taking their cue […] More
