Australian interest rates

Contemporary Australian governance is all about diffused responsibility.

Via Domain: Billions of dollars of congestion-easing infrastructure projects that could boost the economy and increase safety are stuck years down the track as the Reserve Bank of Australia calls on the Morrison government to do more.

Via Westpac: An expected soft update but a robust trend in participation is making it very hard to see unemployment getting below 5% any time soon, let alone getting down the RBA’s natural rate of 4.5%.

At the AFR come stunning leaks from APRA staff via its internal review: “When institutions are consistently able to get a different result by appealing to GM levels and above, line supervisors become demoralised and institutions become emboldened to push the limits,” one employee said.

Interesting from RBA foghorn Terry Mccrann today: Any suggestion that Reserve Bank governor Philip Lowe compromised his or the RBA’s independence with his ‘meet and quote’ with Treasurer Josh Frydenberg last week is just silly and quite simply doesn’t square with the facts.

Obviously enough. Via the ABC: An independent review is urging the overhaul of the Australian Prudential Regulation Authority (APRA), slamming it for a poor culture and variable leadership.

Via UBS: Implications: UBS still -25bps by Nov; but risk of earlier “if needed” The RBA cut to 1.00% ahead of our long held dovish view. We still think their GDP forecasts will be downgraded again in their Aug SOMP, raising their UR profile (falling to 4¾%).

Via Bill Evans at Westpac: The minutes of the July monetary policy meeting of the Reserve Bank Board confirm that the Board is still open to further monetary easing, although as we had expected, prospects for a third consecutive easing in August have been dampened.

June rantings from the Lunatic: International Economic Conditions Members commenced their discussion by noting that growth in the global economy had remained moderate over preceding months.

As we know, the superb RBNZ has fully integrated monetary and macroprudential policy tools, a creative leadership and national interest values.

Weeoo, weeoo, weeoo.

From Roy Morgan Research: In June, Australians expected annual inflation of 3.8% over the next two years as the RBA cut interest rates to a record low 1.25% in the first week of June.

Via Martin North: We have released the June 2019 mortgage stress results, based on our running 52,000 household surveys.

So says Morgan Stanley: We think the RBA will continue to express the view that fiscal policy will provide more effective easing from here, and look to that to provide the next tranche of stimulus (if needed).

Via the excellent Damien Boey at Credit Suisse: We have updated our proprietary financial conditions index (FCI) for Australia in the wake of the RBA’s decision to cut rates (again).

And I thought “Evil” Anna Bligh had disappeared.

It’s wall-to-wall Lunatic RBA today.

Via Chief Lunatic, Phil Lowe, last night: A very warm welcome to this community dinner with the Reserve Bank Board and senior staff.

Via Bill Evans at Westpac: As we expected, the Reserve Bank Board lowered the cash rate by 25bps to 1.00% at its July meeting.

Via ANZ: Today we have decided we will reduce variable interest rates for our home loan customers by 0.25pc pa.

Tipping point anybody?

The RBA is out with its July decision and it is chopity chop, chop: At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.00 per cent.

Via the AFR comes the ubermen: But The Australian Financial Review Rich Lister and shopping centre billionaire Con Makris and the chief executive of the largest collection of convenience shopping centres in Australia Anthony Mellowes both said cutting rates would not send the right signal.