AUD extends its fall
Morgan Stanley says Australian credit crunch has begun
RBA is still not ruling out rate cut - WSJ
As per Wall Street Journal (WSJ) report, the Reserve Bank of Australia (RBA) board member Ian Harper sees scope for interest rate cuts if consumption across the economy loses momentum entirely.
Key quotes
The thing that is causing an issue for the RBA is slow growth in wages, which is feeding into slow growth in household income
If you start to lose that momentum, that might be the basis of some sort of policy action
While commenting on the dismal retail sales, Harper said, "It is yet another indication that we are not out of the woods"
Progress in the economic recovery is painfully slow
The level of AUD also remains an inhibitor to growth, even after recent falls
You wouldn't want to be jumping the gun and tightening too quickly
via: fxstreet
- listweakness in retail sales over the past two months may soon become entrenched
"crunch time" for Australian households has begun
"In early June, we expressed the view that the Australian consumer faces a domestic cash flow and credit crunch ... Income growth has not recovered, 'cost of living' inflation is re-accelerating and 'macro-prudential'-related tightening of credit conditions is extending from housing into consumer finance."
RBA is still not ruling out rate cut - WSJ
As per Wall Street Journal (WSJ) report, the Reserve Bank of Australia (RBA) board member Ian Harper sees scope for interest rate cuts if consumption across the economy loses momentum entirely.
Key quotes
The thing that is causing an issue for the RBA is slow growth in wages, which is feeding into slow growth in household income
If you start to lose that momentum, that might be the basis of some sort of policy action
While commenting on the dismal retail sales, Harper said, "It is yet another indication that we are not out of the woods"
Progress in the economic recovery is painfully slow
The level of AUD also remains an inhibitor to growth, even after recent falls
You wouldn't want to be jumping the gun and tightening too quickly
via: fxstreet
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