Yesterday RBA Govenor Glenn Stevens adressed parliament on the state of our economic health.
The bottom line is that interst rates are unlikley to move for the rest of the year. In fact yesreday NAB Bank said rates would be in hold till the middle of next year.
The speech makes intersting reading. If you have time you can read it here
For those short of time, here’s his last paragraph:
In summary, there is a heightened degree of uncertainty at present. There are major challenges in the global economy and significant forces at work in the Australian economy. But at this point in time, our terms of trade are at a record high, while our unemployment rate remains low. Inflation bears careful watching, but we can keep it under control. Our banks are strong, our currency is sound and our sovereign credit position is in the international top tier. Consumer ‘caution’, while making life hard for the retail sector, is also building resilience in household balance sheets. If we are entering another period of weaker international conditions, this is a pretty good starting point from which to do so.
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