RBA leaves the cash rate at 2.5% and warns "market volatility increasing"Reserve Bank of Australia (RBA) decided to leave the official cash rate on hold at 2.5% in its October meeting and warned that volatility has gathered momentum in financial markets.RBA governor Glenn Stevens commented that growth in the global economy is continuing at a moderate pace and commodity prices in historical terms remain high, but some of those important to Austral.....
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Australia’s Economy Australia’s economy has performed relatively strongly across 2014, however a number of headwinds remain going into 2015. The biggest challenge for the Reserve Bank of Australia is stimulating non-mining sectors of the economy. Although a lower Australian dollar should help earnings growth for exporters, domestic consumption and business expenditure remain subdued.The domestic equity market is expected to remain flat in 2015, w.....
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European stocks in vogueThe European Central Bank’s decision to adopt the quantitative easing strategy of its global peers is a major factor in making Europe a more attractive investment proposition.European stocks are back in vogue as investors wager that the region’s banks and exporters stand to benefit from a flood of cheap money and a weaker currency.The European Central Bank can claim much of the credit for boosting the allure of Europe’s bo.....
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45% of Australians have multiple super accountsOf the over 14 million Australians with money held in a superannuation fund, approximately 45% of these people have more than one super account, according to the Australian Taxation Office (ATO).As at 31 December 2014, there were a total of just over six million accounts, either lost or ATO-held, with a total value of just under $16 billion. This however, decreased by over $800 million in the six mon.....
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Soaring House PricesWhen the Reserve Bank of Australia’s board meets, a key topic of conversation will be the reaction of our unusually interest rate elastic housing market to recent reductions in local borrowing costs.The bottom line is that Australia’s housing boom is racing away. So-called “macroprudential” constraints on bank lending, which place a soft limit on credit growth at four times current wages growth, have had zero impact to date.An.....
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AAA Rating RetainedAustralia’s strong credit rating and impressive economic performance over the past decade has been the envy of many economies in the world.Australia remains one of only nine countries rated AAA with a stable outlook by the three major international credit rating agencies, Moody’s, Standard & Poor’s and Fitch. Moody’s recently confirmed Australia’s sovereign credit rating outlook has remained stable amid global financial unc.....
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A new investment service The Australian Securities Exchange’s mFunds platform service allows investors to directly purchase units in a managed fund as they would ordinary shares.This compliments existing options of listed shares, listed investment companies (LICs) and exchange-traded funds (ETFs) thus enabling investors to structure a sophisticated investment portfolio through a single platform.DIY super investors in particular will look to inves.....
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Superannuation - Additional PaymentThe anti-detriment deduction was introduced under section 295- 485 of the ITAA to provide compensation to a spouse, former spouse (via the Estate) and children of such members by allowing them the opportunity to receive an increased death benefit by way of an additional lump sum payment from the fund. This payment was intended to replace the reduction in any lump sum payment caused by the contributions tax. It o.....
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Growth estimated at 6.1%With gross domestic product (GDP) growth estimated at 6.1% in 2014, East Asia remains the world’s fastest-growing region, according to the United Nations World Economic Situation and Prospects 2015 report.This compared with a global economy which is expected to grow 3.1% in 2015 and 3.3% in 2016, with an estimated growth of 2.6% for 2014, according to the report.After a second year of estimated growth of 6.1% in 2015, East.....
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Cash Rate Cut to Record LowAfter 18 months of keeping rates on hold, the Reserve Bank of Australia (RBA) lowered the cash rate by 25 basis points to 2.25% at its February RBA board meeting.The move to the lowest rate since the RBA commenced setting a cash rate target in 1990 is designed to stimulate business activity and household spending in the face of weak growth, falling commodity prices and sluggish investment.Growth is below-trendThe RBA’s .....
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