RBA keeps offical cash rate at 4.75% at the monthly meeting on Tuesday, even though inflation seemed to be at the higher end of the acceptable 2% - 3% band.
USA narrowly avoids default by a couple of hours and the world sharemarkets plunge. Investors are concerned that the world's largest economy is faltering and heading towards another recession.
Wall Street fell over 2%, Asian markets over 2% and European markets between 2% - 3%!
Australia dollar drops approx. 3 cents USD from Tuesday morning to Wednesday afternoon.
$30 billion wiped off Australian share market, as it drops below 4,400 for first time in almost 12 months with this years gains all but gone. Markets are down 13% since April representing a loss of $170 billion.
Australian retail sales in Australia slipped by 0.1% with most economists predicting a 0.4% increase.
Economists and short term money markets now factoring a interest rate cuts over the next few months. It was only 3 - 4 months ago that economists were predicting 2 to 3 interest rate rises over the next 6 months.
Amazing couple of days...more to come??
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Nice information!
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