Australian interest rates

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.

Might as well just put out the press release on automatic pilot: Australia’s inflation rate, at 1.3% (March quarter), remains well below the Reserve Bank of Australia’s official target range of 2-3%.

While the 1,400 fruitcakes at the Lunatic RBA and Corrupt APRA are busy deploying psychologists to bank boards to understand how to babysit psychopathy, the 300 focused souls at the RBNZ remain a beacon of sanity.

Via Vimal Gor at Pendal: Everything (yes, everything) has a price, and in most cases higher prices drive down demand.

Via the BIS overnight: The year in review It was perhaps too good to be true.

Why would they?

Via Bill Evans at Westpac: The RBA Board meets next week on July 2.

From Mr Joye: The bottom line is that with more cuts coming, and APRA yet to reduce its 7 per cent serviceability test, the housing party is just getting started.

Via the RBNZ today: The Official Cash Rate (OCR) remains at 1.5 percent.

From Westpac this time: • As mentioned in our front page essay, last week’s RBA Board Minutes did nothing to silence the increasing market focus on the potential for the RBA to venture into more unconditional forms of monetary policy, such as quantitative easing.