Australia leaves key rate at record low

The rate at record low, and the same for its currency...

Australia leaves key rate at record low

SYDNEY — Australia’s central bank kept its main cash rate at 2.5 per cent for a fourth consecutive month yesterday as mounting evidence suggested that stimulus was working to revive the economy, and said the currency was “still uncomfortably high”, even after a 4.6 per cent decline since its previous meeting last month.

The widely expected decision came as surprising strength in retail spending and exports led analysts to upgrade their forecasts for third-quarter gross domestic product data expected to be released today.

“The easing in monetary policy that has already occurred since late 2011 has supported interest-sensitive spending and asset values,” Reserve Bank of Australia Governor Glenn Stevens said in a statement.

“The full effects of these decisions are still coming through, and will be for a while yet.”
...
http://www.todayonline.com/business/aust...record-low

GDP growth 0.6pc in September quarter, annual rate 2.3pc

THE economy expanded more slowly than expected in the September quarter and remains well below the long-term trend, according to figures from the Australia Bureau of Statistics.

Data released today showed gross domestic product (GDP) in the three months to the end of September grew a seasonally adjusted 0.6 per cent.

For the 12 months to September, GDP grew at 2.3 per cent. The full-year number was well below the growth trend rate of around 3.25 per cent.

GDP was expected to have grown 0.7 per cent in the September quarter, for an annual rate of 2.5 per cent, according to an AAP survey conducted last week.

The Australian dollar fell from around $US0.9130 just before the data to an intraday low of $US0.9068 after, then recovered slightly to US$0.9076.

http://www.theaustralian.com.au/business...6774947957

(04-12-2013, 10:17 AM)CityFarmer Wrote: The rate at record low, and the same for its currency...

Australia leaves key rate at record low

SYDNEY — Australia’s central bank kept its main cash rate at 2.5 per cent for a fourth consecutive month yesterday as mounting evidence suggested that stimulus was working to revive the economy, and said the currency was “still uncomfortably high”, even after a 4.6 per cent decline since its previous meeting last month.

The widely expected decision came as surprising strength in retail spending and exports led analysts to upgrade their forecasts for third-quarter gross domestic product data expected to be released today.

“The easing in monetary policy that has already occurred since late 2011 has supported interest-sensitive spending and asset values,” Reserve Bank of Australia Governor Glenn Stevens said in a statement.

“The full effects of these decisions are still coming through, and will be for a while yet.”
...
http://www.todayonline.com/business/aust...record-low

Is this the reason why quite a few S-REITs are venturing into the Australian real estate market recently?