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Weekly Economic Commentary

Weekly Economic Commentary

Categories: Commodities, General

Since the Reserve Bank moved to a neutral (monetary policy) bias early in 2014 the RBA has often highlighted their concern about the increase in housing market activity, especially the rise in house prices.

The last week has seen the RBA make comments regarding this, now adding that they are in discussion with APRA with regard to the possibility of introducing “macro-prudential” (non-monetary policy) tools to reduce this pressure.

Any non-monetary policy measures will take time to be implemented and take effect, but should reduce some of the pressure on short term rates, even if housing remains an area of concern. According, forward yields on bank bill futures contracts have moved lower over the course of the last week, implying a deferral of any future rate hike by the RBA (refer below).


The AUD continued it’s push lower over the weekend, touching a low of USD0.8751 following some positive US economid data. The data also fuelled a sell off in US bonds and investors returned to the share market, with the Dow pushing 1% higher on Friday night. Our share market consequently is set for a solid open today.

Source: Rural Bank


Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank – A Division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879