- Ben Jarman, JP Morgan economist
Next week the RBA will have its word and even though the central bank will stay pat on the monetary policy, Glenn Stevens can radically change a tone of his speech from neutral to dovish. The central bank pledged to keep interest rates unchanged for a period of time, however, recent data is suggesting the easing cycle might be not over yet and the RBA will have to pull the trigger again.
Australian officials are desperately looking for another sector that will assure economic prosperity in a long-term. Mining sector is losing its steam, and the recent decision by Hastings Deering company to cut around 400 staff is another proof of that. While they have implemented a set of efficiency and productivity measures, none of them helped to offset challenging market conditions.
There were hopes the housing market will provide a significant boost to the economy, however, Australian Bureau of Statistics said the number of buildings approved sank a seasonally adjusted 0.5% to 15,659 over the period. They were also 16.0% higher on year, however weaker than the anticipated 23.3% jump. While general picture still adds to evidence the construction sector is still in a boom phase, some indicators are suggesting the market is starting to moderate.
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