Australian cash rate on hold – December 2007

The Reserve Bank of Australia kept their target cash rate on hold yesterday. In a push to increase transparency, they now release a statement with every decisions, which is awesome. Yesterday’s statement was relatively neutral, however as my esteemed colleague CPW says, there is nothing to compare it too so its hard to tell exactly what the statement means. My guess is that the Bank is happy to stay on hold, until the risks associated with subprime worries in the US calm down.

At the same time the September GDP result came out, with a 1.0% seasonally adjusted increase in the September quarter, taking average annual growth to 3.4%. Although 1.0% for a quarter seems high, CPW informed me that this is what the market expected, and furthermore the growth in previous months had been revised down.

2 replies
  1. Matt Nolan
    Matt Nolan says:

    Damn it to hell. Thats the problem with typing things in and then just clicking on the spell checker without looking at what its changing it too. I went to fix it, and realised I didn’t know how to spell the word in the first place.

    I would blame Otorohanga for my poor spelling, but it wouldn’t be fair on them 🙂

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