The Reserve Bank of Australia cut interest rates by a quarter point to 3.25 percent on Tuesday. Reuters reports:
"The Board judged that, on the back of international developments, the growth outlook for next year looked a little weaker," Reserve Bank of Australia (RBA) Governor Glenn Stevens said after the central bank's monthly policy meeting.
"The Board therefore decided that it was appropriate for the stance of monetary policy to be a little more accommodative."
Data from the UK on Tuesday certainly pointed to weak growth.
UK house prices fell 0.4 percent in September according to Nationwide. So despite the 1.1 percent bounce in August, house prices are now 1.4 percent below last September's level.
As house prices fall, construction activity contracted. The Markit/CIPS construction PMI rose to 49.5 in September from 49.0 in August, remaining below 50 for a second consecutive month.
Another report on Tuesday from the British Chambers of Commerce showed that firms are scaling back investment and hiring plans.
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