Australia’s Interest Rates Kept On Hold
Rates stay at historic low 0.1 per cent.
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Today, the RBA has passed down its decision to keep Australia’s interest rates on hold at the historic low of 0.1 per cent.
The decision comes despite growth in the Australian property market and the global economic outlook appearing more favourable.
The statement highlighted the importance of low rates to support the rebuilding of the economy and support the supply of credit to both households and business balance sheets.
“Lending rates for most borrowers are at record lows and housing prices across Australia have increased recently,” said Governor of Monetary Policy Decision Philip Lowe.
“Housing credit growth to owner-occupiers has picked up, but investor and business credit growth remain weak. Lending standards remain sound and it is important that they remain so in an environment of rising housing prices and low-interest rates.”‘
The decision has also taken into account the global economic outlook in the wake of COVID-19 and the successful rollout of vaccines.
“The outlook for the global economy has improved over recent months due to the ongoing rollout of vaccines. While the path ahead is likely to remain bumpy and uneven, there are better prospects for a sustained recovery than there were a few months ago,” added Dr Lowe.
Closer to home, economic recovery is well underway with unemployment declining to 6.4 per cent alongside strong retail spending and most households and businesses that had deferred loan repayments having now recommenced payments.
The recovery is expected to continue with the GDP expected to return to its end-2019 level by the middle of this year
The Reserve Bank remains committed to the 3-year yield target and has doubled the bond-buying program last month by extending it for a further 20 weeks.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Employment grew for the 16th consecutive month as companies expanded.
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According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
