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RBA Coy About Future Moves

Australia left its key interest rate unchanged at a record low and was coy about whether further cuts would be needed to boost growth, sending the currency higher.  Central bank Governor Glenn Stevens and his board left the cash rate at 2 percent in Sydney Tuesday, as predicted by traders and economists. “Monetary policy needs …

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AUD/USD to 0.7650 after RBA Sits at 2%

Australia’s central bank kept interest rates steady at a record low 2.0 percent, in line with analysts’ expectations, but the Australian dollar still pushed higher. All 24 economists polled by Reuters expect the RBA to be on hold, but eight respondents say interest rates could be reduced to 1.75 percent or lower by December, if …

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Australia’s Treasury: Sydney ‘Unequivocally’ in a Housing Bubble

Sydney is in the grip of a housing bubble, Australia’s most-senior economic bureaucrat said in one of the strongest warnings yet by a government official. “When you look at the housing price bubble evidence, it’s unequivocally the case in Sydney — unequivocally,” Treasury Secretary John Fraser said in testimony before a parliamentary committee in Canberra …

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RBA Expected to Keep Rates Steady Next Week

The Reserve Bank is unlikely to cut rates further next week as it balances the need to boost economic growth while keeping Sydney and Melbourne house prices under control.  Market pricing for a June rate cut has remained at just four per cent this week, despite Thursday’s downbeat capex data which showed business investment slumped …

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