CENTRAL – AUSTRALIA

Rate cut fires up shares

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1 & 6 : 4-Feb-15

The Australian dollar fell to its lowest level since the global financial crisis after the Reserve Bank reduced the cash rate to 2.25 per cent on 3 February 2015. Several smaller banks have reduced their standard variable mortgage rates by the full 25 basis points, although the four major banks have yet to respond. Federal Treasurer Joe Hockey says they should do so, adding that he expects the central bank to further reduce the cash rate in coming months. Factors such as the slowing economy and weak consumer sentiment contributed to the rate cut

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, PRICELINE PTY LTD, BANK OF QUEENSLAND LIMITED – ASX BOQ, MEMBERS EQUITY BANK PTY LTD, ING DIRECT, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, INTERNATIONAL MONETARY FUND, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, TRANSURBAN GROUP LIMITED – ASX TCL

Property powerhouses set the pace on price rises

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Original article by Turi Condon
The Australian – Page: 5 : 3-Feb-15

Figures from CoreLogic RP Data show that house prices in Sydney and Melbourne increased by 1.4 per cent and 2.7 per cent respectively in January 2015. The Perth, Adelaide and Darwin property markets recorded house price declines during the month. CommSec’s Craig James says the Reserve Bank will consider the state of the residential property market when deciding whether to reduce the cash rate on 3 February

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, COMMONWEALTH SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MERITON APARTMENTS PTY LTD, RESERVE BANK OF AUSTRALIA

Market divided over rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 8 : 3-Feb-15

Opinion is divided on the likely outcome of the Reserve Bank of Australia’s board meeting on 3 February 2015. The majority of analysts polled by Bloomberg News expect the cash rate to be left at 2.5 per cent, although the futures market has priced in a 66 per cent chance of a rate cut. Former Reserve Bank governor Bernie Fraser says a rate cut should be implemented sooner rather than later. A number of the Reserve Bank’s peers have eased monetary policy in recent months

CORPORATES
RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, AUSTRALIAN NATIONAL UNIVERSITY

Dollar to stay below US80c at year end

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 22 : 30-Jan-15

The Australian dollar was fetching $US0.7858 late in trading on 29 January 2015, after peaking at $US0.8022 on the previous day. Gavin Friend of National Australia Bank expects the currency to be trading at the $US0.78 level at the end of 2015, while Richard Grace of the Commonwealth Bank has a more bearish year-end forecast of $US0.76. There is growing expectation that the Reserve Bank will reduce the cash rate on 3 February

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, SWISS NATIONAL BANK, FOREX.COM, UNITED STATES. FEDERAL RESERVE BOARD, CENTREBET INTERNATIONAL LIMITED, WESTERN UNITED LIMITED, COMMONWEALTH SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

Low inflation corners RBA

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 : 29-Jan-15

Australia’s underlying inflation rate increased by 0.7 per cent in the December 2014 quarter, which was higher than expected. There was an 0.2 per cent increase in the CPI during the quarter, and 1.7 per cent year-on-year. The benign inflation data may strengthen the case for a reduction in the cash rate when the Reserve Bank board meets on 3 February 2015. The central bank may also be swayed by recent monetary policy easing in other countries, which may prompt renewed support for the Australian dollar

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BUREAU OF STATISTICS, EUROPEAN CENTRAL BANK

Aussie’s tumble may slow RBA cuts

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Original article by Jacob Greber, Mark Mulligan
The Australian Financial Review – Page: 1 & 6 : 27-Jan-15

The Australian dollar reached a low of $US0.7855 on 26 January 2015, and it has lost more than four per cent of its value in just over a week. The currency’s recent decline could prompt the Reserve Bank to leave the cash rate on hold in the near-term. Central bank governor Glenn Stevens recently suggested that a fall to around the $US0.75 level would be desirable. The upcoming release of inflation data is likely to influence monetary policy

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

Rouble rout sends Aussie on the slide

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 10 : 18-Dec-14

The Australian dollar reached an intra-day low of $US0.8166 on 17 December 2014. The bearish sentiment toward the commodity currency was prompted by the continued selldown of Russia’s rouble, which has shed about 15 per cent in recent days. The Australian dollar’s continued weakness may be welcomed by the Reserve Bank, which have been talking down the currency for some time. However, Stephen Halmarick of Colonial First State Global Asset Management says this could mean that interest rate cuts in 2015 may not be necessary

CORPORATES
RESERVE BANK OF AUSTRALIA, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF NEW ZEALAND, STANDARD AND POOR’S ASX 200 INDEX, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, OOH!MEDIA LIMITED – ASX OML, LATAM AUTOS LIMITED – ASX LAA, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE

Stevens calls for US75c dollar

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Original article by Jacob Greber, Michael Stutchbury
The Australian Financial Review – Page: 1 & 10 : 12-Dec-14

The Australian dollar is currently trading at around $US0.83, but Reserve Bank governor Glenn Stevens believes that it needs to fall further. He argues that a more appropriate level for the currency would be about $US0.75, arguing that the decline in Australia’s terms of trade means the dollar needs to be lower. Stevens also says that the need for stability is a major reason why interest rates were kept on hold during 2014, and stresses that any further easing of monetary policy would need to has a positive effect on business and consumer confidence

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Westpac breaks ranks to tip RBA will cut rates

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 5-Dec-14

Westpac chief economist Bill Evans expects official interest rates to be reduced in both February and March 2015, citing factors such as the latest GDP data and the high Australian dollar. National Australia Bank and ANZ Bank economists have indicated that they may revise their forecasts for interest rates to remain on hold until late 2015. Economists at Goldman Sachs, Deutsche Bank and Credit Suisse have already forecast that the Reserve Bank will cut the cash rate in 2015

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. FEDERAL RESERVE BOARD

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