Australia

Central banker: Aussie dollar needs to fall further

"Reserve Bank of Australia governor Glenn Stevens has indicated he wants an Aussie dollar closer to 85 US cents, while pointing to 'promising signs' that the economy is transitioning away from the mining boom. But he said that turning the lower currency into a real depreciation that spurs growth would require real wage cuts. 'I thought [US]85 cents would be closer to the mark than [US]95 cents . . .but really, I don't think we can be that precise. I just think that if things over the medium term evolve as we're presently assuming – and I think it's reasonable to make these assumptions – it's going to be surprising if a nine at the front is the right number,' he said." Continue reading →

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Central Banks in New Zealand and Australia Issue Bitcoin Warning

"Representatives from the central banks of New Zealand and Australia have issued their own official warnings on bitcoin, terming the currency 'interesting, but risky'. John McDermott, assistant governor at the Reserve Bank of New Zealand (RBNZ), said banks and businesses should 'tread very carefully' with the digital currency, in a report by the Wall Street Journal. RBNZ Governor Graeme Wheeler cited price volatility as a cause for concern. Next door, the governor of the Reserve Bank of Australia, Glenn Stevens, said he was 'still trying to understand' the cryptocurrency during an interview with theAustralian Financial Review." Continue reading →

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38,000 Australians take ANZ bank to Federal Court over banking fees

"The largest consumer class action in Australian history begins in the Federal Court in Melbourne today as 38,000 ANZ customers appeal over the bank's fees. Law firm Maurice Blackburn is taking the action on behalf of ANZ customers, with the court set to examine whether the fees are fair or whether they are excessive and therefore illegal. A High Court decision last year paved the way for the trial in the Federal Court. Maurice Blackburn has the financial backing of publicly listed litigator IMF. Andrew Watson, the head of class actions at Maurice Blackburn, says the fees are not an accurate reflection of the costs faced by banks when customers are caught out." Continue reading →

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Australian central bank’s talk of intervention sends Aussie dollar down

"The overnight fall in the Australian dollar shows once again that just a few carefully targeted words from Reserve Bank governor Glenn Stevens have the power to move markets. While Mr Stevens did not say the Reserve Bank was about to intervene to pull the dollar down, his comment that the option was in the monetary policy 'toolkit' proves that words from the central bank governor can be timely bullets. The impact-laden comments show the RBA's frustration in its attempts to lower the dollar, despite 2.25 percentage points of cuts to the official cash rate since late 2011." Continue reading →

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