RBA interest rate calls from the global woes to surpass Australian growth: an economy-San Francisco Chronicle

August 21 (Bloomberg) — the Australian Reserve Bank signal growing confidence among the major developed countries, high domestically to keep the loan costs, "soft" in the decision this month. the global economy, weather

The Central Bank predicted the expansion rate in the "medium term", the economic trend around Europe through the woes of speed to an outlook published today into the clouds in Sydney on August 7 at the Board of RBA meeting. The bank kept interest rates on 3.5% after a rally in the benchmark of the second does not change for months.

The report was optimistic officials there in the country to curb real estate market and the European debt crisis has slowed the growth of the People's Republic of China, the two will withstand the turmoil underscores the Australian policy makers. RBA will also strengthen Switzerland Central Bank buying the Australian dollar, currency and inflation pressure damped joined the trend, he said.

"The Reserve Bank does not exacerbate the global economy any time soon, and the cutting speed is not" Craig James, Australia, the country's largest bank, in a research note, said Commonwealth Bank Senior Economist. "Policy makers in the domestic economic situation more comfortable but will continue to watch carefully the global situation."

Glenn Stevens, Governor's decision in June to November, the reduction of 1.25 percentage points, reflecting a stronger consumer, can extend the pause after capital expenditures and ongoing work to buy the pipeline growth. Finally, the RBA interest rate lowered June 5, after the currency rose to 7.7 percent.

SNB purchases

Switzerland's Central Bank in May and June, about 100 billion euros ($ 124 billion) to purchase the larger purchases against the euro, said RBA to keep the nail of the franc inflation pressure have occurred in July to prevent.

"Some were kept on buying euros, while a significant share in the converted Australian dollar and other currencies, including a modest amount," min said.

Australian dollar, Sydney at 4: 18 pm in front of the current as at $ 1.0455 1.0494 $ advanced. It's in the past two years, average $ 1.02 cents up to 72 United States. for the previous decade, while at the same time, terms of trade, export, import prices lowest in June, measured from relative prices since 2010.

' High ' currency

"The exchange rate weakened despite relatively high level maintained in the global outlook and commodity prices in the downturn" at policy makers. The so-called closed the parity above all but 23, Australia this year United States dollar currency was floated in December 1983 75 United States cents above the average since the remaining.

Elsewhere in the Asia-Pacific region in Hong Kong, you can report the slowing of inflation in July, today, according to a Bloomberg survey of economists India also in the same month, consumer price data release.

Advanced Asian stocks. The MSCI Asia Pacific index 121.12 0.3% at 3: 27 pm from May 8, after Tokyo earlier 121.42, since most impressed at a high level.

United States Federal Reserve Bank President Dennis Lockhart from the Atlanta Chamber of Commerce, Latin America is a collection of Economic Outlook is expected to say in.

Estonia, Ireland in Europe last month for the producer-price inflation will release figures. Consumer price inflation rose 0.1 percent in the Polish data core, according to a survey of economists last month, Facebook provides you with the ability to be unchanged in June.

Weak confidence

Stevens decided to halt the expansion rate, since the Government report painted a mixed picture of the economy: employment and wages rise and home loan approvals fell the most in five months this year, while rising consumer confidence.

"There is that consumer spending in June quarter to maintain momentum in the consumer sentiment remains at the level of the soft signs, if that," said the minutes. "Previous falls in interest rates and are more likely to increase the attractiveness of the yield gains rental housing investments."

The dealer is RBA rate cut next month and borrowing costs 3.25% to 0.25% point will resume by the chance of 24% based on a swap deal, according to data compiled by Bloomberg. the price

"The global economic environment remains fragile financial markets and business and household spending potentially delayed by the influence emanating from the euro area and uncertainty," at policy makers.

The expansion of the People's Republic of China

RBA is a more sustainable rate, and the number of People's Republic of China, Australia's biggest stabilize trade partners had shown the growth in "appearance", he said.

People's Republic of China's economy is Europe's debt crisis, as the Government's crack down on cooling domestic demand and flat property, 1 year old, 7.6% at 3 years. the expansion in the second quarter at a slower speed Slowdown in the seven quarters to September to 7.5% 7.9% in three months, cutting its growth forecast for August 9, Deutsche Bank AG, you can expand into.

"There was investment has grown in recent months steadied symptoms and conditions were also a little improvement in the housing market, some early indications" was referring to the RBA, People's Republic of China.

Since the gold rush in the 1850s Australian economic power is the biggest resources boom. Latest bonanza-iron ore, coal, and natural gas-for the Government and the estimated value of 500 billion ($ 525 billion) last month 5.2% unemployment rate contributed to bringing investment projects. It's in the United States and the euro area 11.2% 8.3% lower than.

Job growth

Employment growth "remains a relatively modest in the short term, was expected to be in," according to the RBA minutes.

Mining companies BHP Billiton Ltd. and Rio Tinto Group, including in emerging economies, such as India, People's Republic of China Steel and electricity demand benefits from.

"A great resource in the pipeline project was commenced, or by maintaining a very large stocks of work in recent months, have been approved," the minutes said. "This has not yet occurred, but the potential to more cautious approach must be approved to adopt some of the mining company, in spite of the investment project."