Reserve Bank Of Australia To Crack Down New Measures To Curb Inflation Pressures
The Reserve Bank of Australia (RBA) announced today that the Bank will introduce new stimulus measures to help the nation to contain inflation appreciation that may hurt the economic recovery. However, the rising currency has helped to curb inflationary risks.
The Reserve Bank of Australian released today its minutes that held on May 3, where the Bank sees that the global inflation risks are continuing to accelerate as the commodities prices increased, which have a negative impact on the global economy.
On the other hand, the Bank has noted that increasing currency is helping to contain inflation appreciation.
While the Bank aimed to encourage companies to increase their expansion that will help to hire more worker, because of the Bank targeted to decline the unemployment rates in the upcoming period.
Meanwhile, if economic conditions continued to escalate as expected, higher interest rates were likely to be required at some point if inflation was to remain consistent with the medium-term target.
Australian consumer prices have surged 1.6% in the first quarter, from three months earlier, the most advance since 2006, driven by fruit and vegetable costs as torrential rains in Queensland state shut coal mines and damaged crops.
Read more at [http://sevensummitstrader.info/]
Household spending accounts for 54% of Australia’s economy, and a government report this month showed retail sales unexpectedly fell 0.5 percent in March, the first decline in five months, and sales adjusted to remove inflation stagnated in the three months through March from the previous quarter.
Moreover, the government forecasts mining investment of A$76 billion next fiscal year, spurring companies to hire workers and prompting the RBA to predict the unemployment rate will fall to 4.25 percent by December 2013. Australia recorded its biggest annual job growth on record last year before hiring cooled.
On the other hand, the Bank decided to leave interest rates steady for fourth consecutive month at the highest level of 4.75% during the month of May as the Bank sees the Australian dollar has helped to contain some of inflation rates during this period.
The RBA sees the global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan is having a major impact on Japanese production, and some effects on production of manufactured products. Commodity prices, including oil prices, have generally continued to rise over recent months, pushing up measures of consumer price inflation in many countries.
Read more at [http://theportfolioprophet.info/]
The Reserve Bank of Australian released today its minutes that held on May 3, where the Bank sees that the global inflation risks are continuing to accelerate as the commodities prices increased, which have a negative impact on the global economy.
On the other hand, the Bank has noted that increasing currency is helping to contain inflation appreciation.
While the Bank aimed to encourage companies to increase their expansion that will help to hire more worker, because of the Bank targeted to decline the unemployment rates in the upcoming period.
Meanwhile, if economic conditions continued to escalate as expected, higher interest rates were likely to be required at some point if inflation was to remain consistent with the medium-term target.
Australian consumer prices have surged 1.6% in the first quarter, from three months earlier, the most advance since 2006, driven by fruit and vegetable costs as torrential rains in Queensland state shut coal mines and damaged crops.
Read more at [http://sevensummitstrader.info/]
Household spending accounts for 54% of Australia’s economy, and a government report this month showed retail sales unexpectedly fell 0.5 percent in March, the first decline in five months, and sales adjusted to remove inflation stagnated in the three months through March from the previous quarter.
Moreover, the government forecasts mining investment of A$76 billion next fiscal year, spurring companies to hire workers and prompting the RBA to predict the unemployment rate will fall to 4.25 percent by December 2013. Australia recorded its biggest annual job growth on record last year before hiring cooled.
On the other hand, the Bank decided to leave interest rates steady for fourth consecutive month at the highest level of 4.75% during the month of May as the Bank sees the Australian dollar has helped to contain some of inflation rates during this period.
The RBA sees the global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan is having a major impact on Japanese production, and some effects on production of manufactured products. Commodity prices, including oil prices, have generally continued to rise over recent months, pushing up measures of consumer price inflation in many countries.
Read more at [http://theportfolioprophet.info/]
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