Australian interest rates

The RBA decision is out and it’s a hold as expected: At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent.

It’s raining poor data now.

The unsackable chairman of Australia’s single most important regulator has done it again.

Via Bill Evans at Westpac: The Reserve Bank Board meets next week on September 3.

It’s horrible to watch as APRA’s head zombie regulator, Wayne Byers, shuffles along after a revving house price Ferrari.

Via Capital Economics: The experience from other central banks that have launched QE is that they only did so when the economy was in recession, inflation was negative or the unemployment rate well above its long-term average.

From Guy Debelle at the RBA today: When I started my working life here in Canberra at the Treasury just over 30 years ago, one of the most prominent macroeconomic issues was the current account deficit.

Some better work today from the AFR’s John Kehoe: When Reserve Bank of Australia governor Philip Lowe presented to the world’s central banking elite in the United States on the weekend, he had a none-too-subtle message for Treasurer Josh Frydenberg back in Australia.

Via the excellent Damien Boey at Credit Suisse: On Friday evening, we learnt from leading central bankers that the world is not experiencing a mid-cycle slowdown.

Via Bill Evans a Westpac: The minutes of the Reserve Bank Board meeting for August provided one significant surprise.

UBS’ Jonathon Mott is freaking out a little declaring that RBA’s cure of rate cuts may be worse the housing correction “disease”: With interest rates now ultra-low, the ability of the banks to generate a lending spread and return on equity is very challenged.

Via bearish legend Albert Edwards of Societe General: …investors are perplexed.

From the excellent Gareth Aird at CBA: Overview Output growth in Australia has been soft over the past year.

Via InvestorDaily.

Via the AFR: Westpac’s head of rates strategy Damien McColough said that given Dr Lowe’s comments it was now time to search out the right bonds.

From the normally sensible John Mauldin: I am back from my 14th annual Maine fishing camp.

Hoocoodanode!

Via the FT: Pimco has pared its positions in government debt on fears that a breakthrough in US-China trade talks could trigger a violent sell-off, which would put an end to one of the biggest fixed income rallies in history.

Via Damien Boey at Credit Suisse: Minutes from the RBA’s early August meeting were somewhat dovish in tone.

You honestly would not read about it. Following the RBNZ marvelous and necessary move to lift bank capital ratios to something approximating safe, APRA has declared war upon it: The Australian Prudential Regulation Authority (APRA) has released a strengthened prudential standard aimed at mitigating contagion risk within banking groups.

Via Patrick Commins at the AFR: …there are plenty of reasons to fear another leg higher in the property market.

Via BlackRock: Unprecedented policies will be needed to respond to the next economic downturn.