Boston Managed Investments Limited (ACN 165 345 675) (AFSL 469808)
Phone: 1300 668 699

You are here: Home | News | 2018

Reserve Bank of Australia keeps cash rate on hold at 1.5pc – 4 December 2018

Australian Financial Review

The Reserve Bank of Australia extended its record-breaking run of inaction on rates, keeping the official cash rate on hold for a 28th consecutive month.

Following its December meeting on Tuesday, the RBA kept the official cash rate at 1.5 per cent but was slightly more positive on the labour market citing a pick-up in wages growth last month.

“The outlook for the labour market remains positive. The unemployment rate is 5 per cent, the lowest in six years,” said RBA Governor Philip Lowe in his statement.

“With the economy expected to continue to grow above trend, a further reduction in the unemployment …

International Monetary Fund sees strong Australian growth, but global risks – 20 November 2018

Australian Financial Review

The International Monetary Fund says Australia’s strong economic growth is expected to continue in the near term, gradually leading to an uptick in wages and inflation.

The IMF’s review of the Australian economy also welcomed the cooling housing market, urged a higher goods and services tax to fund lower corporate taxes and told the government to stick with its budget surplus plan.

But the fund warns of “downside” risks from the global economy, due to a slowing China and the US-China tariff fight, which could delay Australia’s economy soaking up spare capacity.

“A sharp tightening of global financial conditions could spill over into domestic financial markets, …

Morrison government fund offers $2b boost for SME loans – 14 November 2018

Australian Financial Review

The Morrison government will inject $2 billion into the small business loan market in an unprecedented effort to boost lending to cash-starved firms which have complained of a worsening credit squeeze.

The creation of a taxpayer-backed securitisation fund to invest in small and medium enterprise (SME) credit will also potentially expand an asset class for institutional investors such as superannuation funds to invest in.

Treasurer Josh Frydenberg and Small Business Minister Michaelia Cash will announce the small business funding policy on Wednesday, promoting the soon-to-be-established Australian Business Securitisation Fund as a way to overcome banks typically only lending to the self-employed when …

Reserve Bank of Australia keeps cash rate on hold at 1.5pc – 6 November 2018

Australian Financial Review

The Reserve Bank of Australia is clinging to its record low interest rate setting even after upgrading its economic and inflation outlook and tipping the jobless rate to fall to a decade-low of 4.75 per cent.

RBA governor Philip Lowe said in a statement on Tuesday that economic growth was forecast to average about 3.5 per cent this year and in 2019, above trends since the 2008 global financial crisis and slightly more than the RBA’s previous estimates of 3.25 per cent.

The central bank’s outlook for the labour market was also more positive and it noted skill shortages were starting to bite in some areas as it hopes for a …

Non-bank lender Liberty says funding costs will remain elevated – 17 October 2018

Non-bank lender Liberty does not expect relief from elevated funding costs that have contributed to interest rate increases and put pressure on key measures of profitability.

Liberty chief executive James Boyle said the lending sector had been under more scrutiny than ever before with multiple reviews from regulators and the Hayne royal commission but viewed it as a positive saying the sector was lifting its game.

“Those changes have led to changes within our market… our industry has changed more over the last 18 months than at any time in our past,” Mr Boyle said.

On Wednesday morning, the privately owned lender reported a strong uptick in lending across …

RBA leaves interest rates on hold at 1.5pc for 21st meeting straight – 3 July 2018

The Reserve Bank of Australia left the official cash rate at a record-low for the 21st straight meeting on growing trade fears but expressed renewed confidence in an improvement in jobs and wages growth.

Extending the most sustained period of monetary policy stimulus in at least a quarter century, board members kept the benchmark rate at 1.5 per cent on Tuesday, despite signs of strengthening economy.

While the decision was widely anticipated, the statement largely defied predictions from some economists that there could be a further softening in the Reserve Bank’s language around the outlook for wages and inflation.

Instead, Reserve Bank governor Philip Lowe appeared to …

Money market reality bites RBA in fight to shield households

The Reserve Bank of Australia is at risk of being increasingly sidelined in its fight to shield debt-loaded households against rising borrowing costs as tightening money markets threaten to force the big four banks into hiking mortgage rates.

While the funding pressures have so far only forced smaller lenders – who have access to fewer pools of potential funding – to raise their home loan rates, analysts believe it is a matter of time before the majors are forced to follow suit.

In a sign of the growing pressures, key benchmark rates at which banks lend to each other have spiked sharply over recent weeks …

Westpac puts another $50 million into VC fund Reinventure

Westpac Banking Corp has triple-downed on its corporate venture capital fund Reinventure Group, investing a further $50 million into a third fund to bring its total commitment to early stage fintechs to $150 million.

A week after Westpac CEO Brian Hartzer described the 20 start-up investments made by Reinventure’s first two $50 million funds as a new “strategic asset” for the bank, Westpac is providing Reinventure co-founders Danny Gilligan and Simon Cant with an additional $50 million to be invested under a more flexible structure.

The third fund will consist of a unit trust stapled to an early stage venture capital limited …

RBA’s Guy Debelle flags housing risk from tighter lending standards on bank probe

Reserve Bank of Australia deputy governor Guy Debelle has warned a further tightening of lending standards would primarily hit the housing market even as he downplayed the dangers of the coming wave of resets to interest – only loans.

In a speech that again reiterates the central bank’s forecast is for a “gradual” pickup in economic growth and inflation, as well as fall in the jobless rate, Dr Debelle emphasised that the official cash rate was likely to r emain steady this year and into next. “If the economy continues to evolve as expected, higher interest rates are likely to be …

RBA keeps cash rate steady at 1.5pc for record 18th meeting

The Reserve Bank of Australia left official borrowing costs unchanged for an 18th straight meeting as it flagged fresh concern about rising US dollar short – term money markets that threaten to drive up interest rates.

Cementing the longest period of policy stability on record, board members meeting on Tuesday kept the overnight cash rate steady at 1.5 per cent, where it has been since August 2016.

Reiterating his view that progress in reducing unemployment and returning inflation to its 2 – 3 per cent target range will be “gradual,” Reserve Bank governor Philip Lowe blamed Donald Trump for increasing turmoil on …