BANKS AND BANKING

RBA changes tune, opens door to interest rate cuts if $A stays high

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 3-Dec-14

The Australian dollar rose to $US0.8524 on 2 December 2014, after the Reserve Bank adopted a dovish position on monetary policy. The central bank has had a bias toward raising interest rates for some time, but governor Glenn Stevens has signalled that the cash rate could be cut again in 2015 if the dollar remains high. The Reserve Bank left the cash rate on hold at its final meeting for 2014

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, UNITED STATES. FEDERAL RESERVE BOARD, BARCLAYS BANK PLC, DEUTSCHE BANK AG, WESTPAC BANKING CORPORATION – ASX WBC

Aussie ‘will hit US76c’

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Original article by Anthony Macdonald
The Australian Financial Review – Page: 27 : 14-Nov-14

Geoffrey Kendick of Morgan Stanley is bearish about the outlook for the Australian dollar, forecasting that it will end 2014 at $US0.85. Kendrick expects the currency to be trading at just $US0.76 at the end of 2015. He also believes that there is the potential for global deflation, and he does not expect the Reserve Bank to increase official interest rates before its US counterpart does so

CORPORATES
MORGAN STANLEY AND COMPANY INCORPORATED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Stevens slams bank holdouts

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Original article by Richard Gluyas
The Australian – Page: 21 : 24-Oct-14

A new payments platform enabling real-time processing of transactions is supposed to be rolled out with the help of the Australian banking sector by late 2016. However Westpac Banking and others have not yet approved the incorporation of a joint venture for the project, drawing sharp criticism from Reserve Bank of Australia governor Glenn Stevens. He told the 2014 congress of the Australian Payments Clearing Association that the central bank "would be duty-bound to consider a regulatory ­approach" if no progress can be achieved

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Inflation on track and RBA still likely to tighten with the Fed

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Original article by Alan Mitchell
The Australian Financial Review – Page: 8 : 23-Oct-14

Australia’s CPI data for the third quarter of 2014 suggests that inflation is likely to be at the lower end of the Reserve Bank’s target range by the end of 2015. The central bank expects the underlying inflation rate to fall to about 2.25 per cent per annum in the December quarter. The Australian dollar is likely to continue to weaken against the US dollar if interest rates are raised in the US

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

RBA warns: share sell-off will be violent

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Original article by Adam Creighton
The Australian – Page: 21 : 15-Oct-14

A Citi investment conference in Sydney on 14 October 2014 heard from Guy Debelle, head of financial markets at the Reserve Bank of Australia. He argued investors were showing irrational exuberance and were ignoring risk at their own peril. Debelle said the stock market volatility of recent weeks was coming unexpectedly late given factors such as rising geopolitical tensions, and an eventual selling of fixed-interest instruments globally would be "violent". He also noted that new regulations prompted by the global financial crisis had reduced the scope for liquidity

CORPORATES
RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S ASX 200 INDEX, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

RBA must ‘bite the bullet’ on housing and lift rates

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Original article by Christopher Joye
The Australian Financial Review – Page: 8 : 8-Oct-14

The Reserve Bank of Australia (RBA) has finally adopted the advice of "The Australian Financial Review", and started to consider macroprudential measures to rein in rampant residential real estate prices growth. Some banking leaders also want the central bank to lift the official cash interest rate from its all-time low, to signal to property buyers that the current environment cannot last. Investors appear oblivious to the fact that the increase in asset values of 7%-plus per annum must come to an end, and a dangerous "bubble" may be forming

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, RESERVE BANK OF AUSTRALIA, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS

RBA asked to explain backflip on lending risks

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Original article by Christopher Joye
The Australian Financial Review – Page: 6 : 29-Sep-14

The Reserve Bank of Australia (RBA) in mid-2013 reduced the official cash interest rate to a record low, and said the residential real estate market was not experiencing a "bubble". However a year on the central bank has revised its stance, and now warns of a dangerous prices surge. It may even resort to using macroeconomic tools, which has sparked concern among federal Senate economics committee members Matthew Canavan and Sam Dastyari of the National Party and Australian Labor Party respectively. RBA deputy governor Philip Lowe has been asked to address the committee on the issue

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BUREAU OF STATISTICS

Aussie dollar under threat as US Fed talks rate rise

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 36 : 19-Sep-14

The US Federal Open Market Committee has signalled that interest rates are likely to rise by the end of 2015. This prompted renewed support for the US dollar on 18 September 2014, while the yield on US 10-year bonds increased to 2.61 per cent and the Australian dollar reached a six-month low of $US0.8938. The Australian dollar is likely to come under further selling pressure when the US does begin tightening monetary policy

CORPORATES
UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX 200 INDEX, DELTEC INTERNATIONAL GROUP, GROUP OF TWENTY (G-20), RESERVE BANK OF AUSTRALIA, PEOPLE’S BANK OF CHINA, BANK OF ENGLAND, FINANCIAL STABILITY BOARD, INTERNATIONAL MONETARY FUND, TRILOGY GLOBAL ADVISORS LLC, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. DEPT OF THE TREASURY, BANK OF JAPAN, EUROPEAN CENTRAL BANK, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CNBC, PNC ASSET MANAGEMENT, BOSTON ADVISORS LLC

Reserve Bank takes aim at mortgages

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Original article by Michael Bennet
The Australian – Page: 17 : 28-Aug-14

The four major as well as smaller regional banks have lodged their submissions for the second round of the Australian Government’s financial system review. The main lenders are arguing against stricter capital requirement rules, while the minor banks want access to public guarantees on the same favourable terms enjoyed by their competitors. However both lobbying efforts have now been criticised by the Reserve Bank of Australia. It is concerned about any moves that would lead to even greater mortgage lending, as consumers may default when interest rates rise again

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BANKERS’ ASSOCIATION, BBY LIMITED, PRICEWATERHOUSECOOPERS, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Interest rates in state of suspension

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 6-Aug-14

Riki Polygenis of the ANZ Bank says the Reserve Bank of Australia is likely to adopt a cautious approach to tightening monetary policy given the state of the economy. The central bank left the cash rate unchanged on 5 August 2014, and its monetary policy statement largely reiterated the views that were expressed in the previous month. Meanwhile, new data shows that the nation’s trade deficit blew out to $A4.8bn in the June quarter

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ROYAL BANK OF CANADA, JP MORGAN AUSTRALIA LIMITED