RBA Minutes 3/8/21

Discussion in 'Markets & Economies' started by mmm....shiney!, Aug 4, 2021.

  1. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Stock standard news release, indicating nothing has really changed and the RBA will maintain the same direction for the foreseeable future, which probably means until 2024.

    Of course, come 2024, rates will still be near zero and unless the government does something materially useful for the real economy, wages growth is likely to remain low which means inflation will be below expectations and underemployment a likely continuing drag on the economy.

    https://www.rba.gov.au/media-releases/2021/mr-21-14.html

    All in all, more of the same continuation of the failure of central banking monetary policy. It's like going to your local takeaway month after month, after month, after month ... and still getting the same overcooked, over salted chiko roll without being able to shop anywhere else.

    Meanwhile in the US, the banks are doing their bit to help expand the credit-fuelled economy:

    https://www.cnbc.com/select/jpmorgan-chase-wells-fargo-us-bank-increase-credit-access/
     
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  2. JulieW

    JulieW Well-Known Member Silver Stacker

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    And the propaganda for Fixed Rate Home Loans continues!

    "Rates won't stay low forever!"
     
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  3. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Currently, going fixed is the likely smart move over variable. But I wouldn't go out any longer than 2 years both from a "rates on offer perspective" and from the perspective of the RBA's forward guidance.
     
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  4. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    We're currently locked in until November this year, which is handy really as the RBA will have a few important announcements regarding their asset purchasing program around then. We'll then re-assess.
     
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  5. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    someone has to feed those fat cats!
     
  6. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Yesterday's meeting would've been all over in under 10 minutes! Most important news was that they will continue purchasing government securities until at least mid-Feb 2022 (previously it was mid-pNov 2021). No surprise really.

    Reiterated that rates won't rise until inflation and wage pressure reaches the RBA's indicated levels.
     
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