Search Results for: rba

Is Australia’s economy set to crash?

Australian consumers are more worried about the medium term outlook than at the peak of the financial crisis, and rightfully so. As The Telegraph reports, by the end of the first quarter this year, Australia’s net foreign debt had climbed to a record $955bn, equal to an already unsustainable 60pc of gross …

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Reserve Bank of Australia quietly increases banks’ bailout buffer

Reserve Bank of Australia

In a globally unique policy, the Reserve Bank of Australia will supply banks with a permanent bailout facility worth up to $380 billion by 2015. The policy has been designed by the RBA to help banks satisfy stringent new liquidity tests which simulate “acute stress scenarios” that deny banks funding …

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Australia will be a casualty of the currency wars

Australian money currency

The world’s most powerful nations are sitting on zero interest rates and printing money to get their currencies down, and there’s very little Australia can do about it, writes Alan Kohler. The currency war will be on in earnest in 2013 as the United States, Europe, Japan and China all …

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Australia has no gold

Reserve Bank of Australia

After a campaign throughout 2012 to seek clarity in regards to the location of Australia’s Gold Reserves the Reserve Bank of Australia (RBA) has confirmed today in an email to me that 99.9% of their Gold Reserves are held in the gold vault of the Bank of England. Please read …

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Australia doomed: debt ceiling raised $200b, central bank given $8.8b

Federal Treasurer Joe Hockey

The Federal Government has given the Reserve Bank of Australia a $8.8 billion one-off grant to help it manage future economic crises. The money will be added to a fund used to offset the central bank’s exposure to risky financial assets. Federal Treasurer Joe Hockey says Australia’s economy continues to …

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Australian banks at risk

big four banks Australia

Despite yesterday’s blowout $6 billion or so profit from ANZ, it turns out all is not entirely well in Australia’s financial services industry. For the last five years, the pattern in the markets has been the same. A crisis starts at the margin, with a peripheral player, and then moves …

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Reserve Bank of Australia is printing money for foreign banks

Australian money

Global banking giant UBS says the Reserve Bank may be printing money to keep the Australian dollar under control. UBS analysts Gareth Berry and Andrew Lilley say the evidence that the RBA may have been printing Australian dollars is compelling, but not yet conclusive. The main evidence the analysts cite …

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Australian unemployment rate hits 12-year high

Part time casual jobs employment

Unemployment has jumped to the highest level in more than 12 years, following a surprise fall in jobs growth. The jobless rate rose to a seasonally adjusted 6.4 per cent from 6 per cent in June, its highest point since August 2002. The economy lost 300 jobs in July: While …

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Media banned from reporting on Reserve Bank of Australia corruption scandal

Reserve Bank

On 29 July 2014, WikiLeaks releases an unprecedented Australian censorship order concerning a multi-million dollar corruption case explicitly naming the current and past heads of state of Indonesia, Malaysia and Vietnam, their relatives and other senior officials. The super-injunction invokes “national security” grounds to prevent reporting about the case, by …

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Australia joins list of nations selling bonds with negative yield

Flag Australia

Australia has this week joined the illustrious list of governments that have been able to borrow money at negative interest rates. The Australian Office of Financial Management, which manages the government’s debt programme, sold $200 million of inflation-linked bonds maturing in 2018 to 13 investors on Tuesday at a yield of …

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Why Australia can’t avoid a recession

Steve Keen Australia recession

By Filip Karinja On the 28th July 2016, Professor of Economics at Kingston University, Steve Keen, gave a presentation on the outlook of the Australian economy at The Royal Society of Victoria located in Melbourne. The British-based economist and author of the popular Debunking Economics book considers himself to be …

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Morgan Stanley: Australia needs stimulus to avoid recession

Australian dollar economy

Australia could face its first recession in almost 25 years unless authorities further stimulate the economy, Morgan Stanley said. The nation’s economy will expand just 1.9 percent in 2015, with 1.5 percentage points of that coming from higher exports, and unemployment will climb to 6.8 percent, Morgan Stanley economists led by Daniel …

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The 2017 ASX Australian investor study top 10 findings

Top 10 2017 ASX Australian investor study

The 2017 ASX Australian investor study results were recently released, here are the top 10 findings from the report: 1 – 60% of Australian adults or 11.2 million people hold investments outside of their institutional superannuation fund. 2 – 37% of Australian adults or 6.9 million people hold investments that are available …

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Australia’s household debt-to-income ratio is at an all-time high

Australia household debt income ratio

The Bank for International Settlements has warned that record household debt levels amassed in the past decade have left Australians among the most vulnerable to a sharp rise in global interest rates. According to the Reserve Bank of Australia, household debt-to-income ratio for Australia is at an all-time high of 189%. …

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This time had better be different: Australian Housing Prices and the Banks

In last week’s post I showed that there is a debt-financed, government-sponsored bubble in Australian house prices (click here and here for earlier installments on the same topic). This week I’ll consider what the bursting of this bubble could mean for the banks that have financed it. Figure 1 Betting the House For two decades after …

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