Tag Archives: Australia
S&P on Australian banks
SYDNEY (Dow Jones) – Australia’s banking sector is vulnerable to the squeeze in global liquidity conditions and any negative swings in investor sentiment, Standard & Poor’s Ratings credit analyst for the country said Tuesday, illustrating the growing threat from Europe’s spiralling debt crisis.
Australia and New Zealand Weekly: Keep your eyes on the PMIs
Central bank watch: Don’t be soured by sentiment. The RBA won’t be. Consensus appears to have shifted towards the idea that weakness in consumer and business confidence provides justification for RBA easing. We have reservations being “roped into the herd” on the grounds that: the “two-speed” economy is, in large part, by design; and “causality” […]
Next rate move in Australia to be down – 100 bp’s of easing through 2012
Westpac now expect a sequence of rate cuts beginning with 25bps in December 2011 and through 2012 totalling 100bps prior to a period of steady rates in 2013. While the catalyst for the first rate cut is likely to come from offshore we do not expect it to be a one off. Interest rates are […]
Australia: Population unlocks house prices
Based on population dynamics, the risk of an imminent day of reckoning for Australian house prices appears low in our opinion. Indeed, based on population projections and real GDP growth forecasts, Australian house prices are likely to deliver a moderate rate of appreciation once the current modest overvaluation has been worked through. Supporting this thesis, […]