Rates on hold but another cut is likely

Rates on hold but another cut is likely

Borrowers anticipating cheaper mortgages needn't give up hope just yet, with the Reserve Bank indicating another rate cut is a very firm possibility. The central bank defied expectations by keeping rates on hold at 2.25 per cent, deeming it appropriate to "hold interest rates steady for the time being" following February's 25 basis point cut. RBA governor Glenn Stevens made it clear that another…

  • $A higher as RBA holds fire AAP - 1 hour 51 minutes ago

    The Australian dollar surged after the Reserve Bank surprised the market by not cutting the cash rate for a second straight month. Westpac chief currency strategist Robert Rennie said the Australian dollar's surge was limited because there is still a strong chance of a rate cut in the coming months. "The easing bias was arguably the key factor capping further gains in the Australian dollar," he said. The RBA's inclination to cut the cash rate in the future should prevent the Australian dollar from getting above a region between 78.50 US cents and 79 US cents, Mr Rennie said.

  • Confidence may lift with house prices: ANZ AAP - 2 hours 18 minutes ago

    Cheap petrol didn't do it, lower interest rates didn't work either and now it's hoped that a resurgence in house prices will lift consumer confidence. Confidence rose 1.5 per cent last week, according to the ANZ/Roy Morgan consumer confidence survey on Tuesday, but it's still too early to tell if the lift will be sustainable, given lower interest rates and petrol prices had failed to provide a boost, ANZ chief economist Warren Hogan said.

  • Shock rate call hits share market AAP - 2 hours 24 minutes ago

    The share market has fallen from its seven year high after the central bank unexpectedly left the cash rate on hold. Investors had been gearing up for the market to break through the 6,000 point mark for the first time since early 2008, but the interest rate decision led to a sell off, IG market analyst Chris Weston said. The Reserve Bank left the cash rate unchanged at 2.25 per cent, but said "further easing of policy may be appropriate over the period ahead". Resources companies were the key area of weakness, with BHP Billiton down 58 cents to $33.54, Rio Tinto down 80 cents to $64.80 and Fortescue Metals three cents weaker at $2.42.

  • RBA holds fire ahead of weak growth figure AAP - 2 hours 45 minutes ago

    Anyone banking on another interest rate cut will have to wait a bit longer. The prospect of a drab set of economic growth numbers wasn't enough to push the Reserve Bank of Australia into cutting the cash rate for a second month in a row on Tuesday.

  • Bonds weaken after RBA meeting AAP - 2 hours 57 minutes ago

    The Australian bond market is weaker after the Reserve Bank's surprise decision not to cut the cash rate. The Reserve Bank said it was appropriate to hold the rate unchanged after cutting it to 2.25 per cent in February. Nomura head of macro products Jon Linton said bond prices only dropped a little because another rate cut is definitely on the cards. Mr Linton said there is no significant data ahead of Wednesday's economic growth figures, but added it will be interesting to see how overseas markets react to the RBA's surprise decision.

  • Share market's charge halted by RBA AAP - 3 hours ago

    The share market's push toward a 6,000-point milestone has been halted by Reserve Bank's surprise decision to leave interest rates on hold. "The market would definitely be somewhat disappointed by the RBA's decision not to back up the February cut," Australian Stock Report head of research Chris Conway said. The big four banks were all higher before the RBA's announcement at 1430 AEDT, but that quickly changed, with Commonwealth Bank National Australia Bank, Westpac and ANZ all ending the day in negative territory.

  • Share market closes lower as rates on hold AAP - 3 hours ago

    The Australian share market has closed lower, retreating after the central bank left the cash rate on hold. IG market analyst Chris Weston said investors had been gearing up for the market to trade through ...

  • No more budget cuts in Tasmania plan AAP - 3 hours ago
    No more budget cuts in Tasmania plan

    Premier Will Hodgman has promised Tasmanians they won't see another axe-swinging budget in 2015. Delivering his State of the State address to parliament on Tuesday, Mr Hodgman outlined his administration's plan for Tasmania over the coming 12 months, including what can be expected from the government's May 28 budget. After coming to power in March 2014, the Liberal government handed down its first budget in August, including cuts of more than 800 public sector jobs, for which it faced criticism from Labor, unions and the Greens. Hundreds of positions had already gone, without the need for forced redundancies, Mr Hodgman said on Tuesday.

  • Jetpack developer soars, then dives AAP - 3 hours ago

    Investors in jetpack developer Martin Aircraft are on a very wild ride. Shares in New Zealand-based Martin Aircraft, which were listed on the Australian Securities Exchange just one week ago at 40 cents each, hit a high of $3.15 in early trading on Tuesday. Martin Aircraft did not announce any news on Tuesday. The exponential rise of Martin Aircraft's shares on Tuesday and the subsequent sharp drop left some brokers and investors scratching their heads.

  • Bankrupt Bryers needs to get back on his feet, lawyer … BusinessDesk - 3 hours ago

    Mark Bryers, bankrupted in 2009 owing $230 million, is running out of time to get back on his feet, his lawyer told a High Court hearing seeking to discharge the former boss of Blue Chip. Associate Judge Jeremy Doogue reserved his decision at the end of a two-day application by Mark Bryers for discharge from his 5 1/2-year bankruptcy. His lawyer, David Chisholm, QC, said 57-year-old Bryers was at an age where he needed to re-establish himself. The court was told Bryers' debts were unrelated to Blue Chip's 2011 collapse, and were a result of personal guarantees he had made to financiers for third-party property developments and to Mide, the New Zealand franchisee of Australian-based Blue Chip Financial Solutions (later Northern Crest) which were never pursued by the parent company.

  • Cyclone Marcia to cost Suncorp up to $150m AAP - 3 hours ago
    Cyclone Marcia to cost Suncorp up to $150m

    Insurance group Suncorp expects to take a hit of up to $150 million from Tropical Cyclone Marcia, meaning it is likely to miss its return on equity target for the financial year. The cost of claims from Suncorp policyholders affected by the cyclone, which hit central Queensland on February 20, is expected to run to between $120 million and $150 million, the insurer said. About 10,000 claims are expected to be made across Suncorp's insurance brands including AAMI, Apia, GIO and Vero, mainly from Rockhampton, Yeppoon, Biloela and Maryborough. After the impact of a Brisbane hail storm in November, Suncorp expects its natural hazard expenses for 2014/15 to be between $690 million and $720 million, ahead of the $595 million the insurer had prepared for.

  • Aust shares close lower AAP - 3 hours ago

    The Australian share market has closed lower, retreating after the Reserve Bank held the official interest rate at 2.25 per cent. At the close on Tuesday, the benchmark S&P/ASX200 index was 25.0 points, ...

  • Stocks to watch at close on Tuesday AAP - 3 hours ago

    Stocks to watch on the Australian stock exchange at the close on Tuesday: IIN - IINET - up two cents, or 0.3 per cent, at $6.45 Internet provider iiNet has paid more than $200,000 in fines for failing ...

  • Housing boom bad news for borrowers AAP - 3 hours ago

    Approvals for the construction of new homes rose 7.9 per cent in January, beating market expectations, and were up 9.1 per cent in the 12 months to January, the Australian Bureau of Statistics said on Tuesday. CommSec chief economist Craig James said the record amount of housing construction in the pipeline may temper the Reserve Bank's desire to cut interest rates. "The housing market in Sydney, in particular, did see a strong initial response to the February easing, which is probably making officials a little jittery, and keen to sit back and observe how the spillovers accumulate," he said. National Australia Bank senior economist David de Garis said it will take some time for this surge in new homes to be built because a large proportion of them are flats.

  • Netflix's hurdle: getting Aussies to pay AAP - 4 hours ago

    Global giant Netflix will arrive in Australia in less than three weeks, ushering in what is arguably the biggest change to the TV landscape in decades. SBS chief executive Michael Ebeid thinks Australia's aversion to paying for content will likely slow the growth of the local online streaming industry. "My feeling is that it (streaming) will take longer to take off in Australia than it did in the US," he told the Broadcasting and Digital Media Summit in Sydney. Online streaming is taking off globally, nowhere more so than the US, where Netflix has close to 40 million subscribers.

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