Treasurer Wayne Swan has admitted proposed reforms to the superannuation system will not make a “significant contribution” to budget savings, as criticism of the proposed changes mounts. “The fact is that we have a substantial savings task in this budget and whatever changes are made in super will not be making a significant contribution to that savings task,” Swan said. However, while industry groups acknowledge the challenges posed by a rapidly ageing population, they remain concerned about the lack of detail around the government’s proposed reforms. “At the moment every Australian thinks their super is at risk because there's no clarity from the government. The government needs to outline what their changes are and end the games,” Financial Services Council chief executive John Brogden said. Glenn Stevens appointed as Reserve Bank governor for another three-year term Reserve Bank governor Glenn Stevens has been appointed for another three-year term as head of Australia’s central bank. The extension, announced on Wednesday by Treasurer Wayne Swan, will see Stevens serve until 2016, when deputy governor Philip Lowe is tipped to take over the role. “I congratulate governor Stevens on his reappointment, which acknowledges his enormous contribution to Australia's economic resilience through his conduct of monetary policy, as well as his enduring focus on financial stability working together with our other key regulators,” Swan said. Cyprus accepts €10 billion bailout conditions Cyprus has formally accepted a set of conditions that will see the troubled island nation eligible for a €10 billion ($A12.27bn) bailout. Under the deal, the Cypriot government will close the bankrupt Laiki Bank, with all deposits under €100,000 transferred to the Bank of Cyprus, while deposits over €100,000 could be taxed at rates of up to 60%. “The Cypriot authorities have put forward an ambitious, multi-year reform program to address the economic challenges they face,” said International Monetary Fund managing director Christine Lagarde. “The overarching goals are to stabilise the financial system, achieve fiscal sustainability and support the recovery of economic activity to preserve the welfare of the population.” Overnight The Dow Jones Industrial Average is down 0.8% to 14550.4. The Aussie dollar is down slightly to US104.57 cents.
The cash rate has been left unchanged at 3%, in line with economists’ predictions, although the Reserve Bank said the exchange rate remains “higher than might have been expected” while demand for credit is low.
Yesterday we looked at how the economy would fare if the Coalition’s broad economic and fiscal policies — to the extent that we know them — were successfully implemented.
The Reserve Bank board has left the cash rate on hold at 3%, despite admitting that the labour market is softening and unemployment is edging higher.
The Reserve Bank has cut the cash rate by 25 basis points to 3%, admitting that while consumer spending is expected to grow, a return to “very strong growth” seen in previous years is unlikely.
The Reserve Bank has confounded expectations by leaving the cash rate unchanged at 3.25%, despite widespread predictions of a 25 basis point cut, and an appeal from Westpac chief Gail Kelly to help lift flagging consumer sentiment.
The ACTU is calling for the Federal Government to introduce a new ‘super profits’ tax on Australia’s booming businesses, according to a report.
The Reserve Bank has lowered the official interest rate by 25 basis points, admitting the growth outlook for next year looks “a little weaker” on the back of international developments.
Interest rates have remained on hold for the third consecutive month, with the Reserve Bank board attributing the decision to “quite firm” consumption growth and low unemployment.
The Reserve Bank has decided to keep interest rates on hold, with an analyst suggesting that monetary policy could go into “hibernation” this winter.
Australia should stop “pretending” it can compete against the low-wage economies of Asia and instead focus on productivity, Reserve Bank governor Glenn Stevens has told the Prime Minister’s Economic Forum.
The Reserve Bank of Australia has cut interest rates by 25 basis points to 3.5%, citing “modest” growth in Australia and “weakening” conditions internationally.
The Reserve Bank says Australia’s electronic payments system is failing to meet customers’ expectations, with RBA governor Glenn Stevens saying parts of the infrastructure are “a bit dated”.
Business industry groups are calling on the big banks to pass on yesterday’s Reserve Bank 50 basis point interest rate cut.
The Reserve Bank has answered the prayers of the business sector, lowering the cash rate by 50 basis points to 3.75%, but experts aren’t convinced the big banks will pass on the rate cut in full.
An interest rate cut looks all but certain following a weak inflation reading, with economists expecting the Reserve Bank to ease rates by 25 basis points when it meets next week.
Consumer sentiment is at its lowest level since August last year, according to the Westpac-Melbourne Institute of Consumer Sentiment, which recorded a 1.6% fall in consumer sentiment in April to 94.5 index points.
The Reserve Bank has kept the official interest rate unchanged at 4.25%, despite calls for it to be cut, saying the decision was appropriate in light of growth, inflation and lending rates.
Eurozone finance ministers have sealed a deal for a 160 billion euro bailout of Greece, which includes a major write-down of privately-held Greek sovereign debt.
The Reserve Bank has surprised the business sector with today’s announcement that the official cash rate will remain unchanged at 4.25%, insisting the situation in Europe is improving.