Monday 2nd July 2012

Rate hopes fade

by Alan Thornhill

A fresh rate cut is still possible tomorrow (Tuesday), but that now seems less likely.

Especially as, the Reserve Bank, itself, has told us that last month’s cut was very much a borderline event.

There have been encouraging signs of improvement in the global economy since then.

The EU’s push last week to unify bank oversight in Europe, surprised many.

However that move, which put the European Central Bank at the centre of efforts to rescue Spanish banks, was widely welcomed on global markets late last week.

Europe’s single currency, the Euro, has always presented problems, without strong central management.

Markets saw the EU’s move as a step towards the establishment of a single banking supervisor in Europe.

The Reserve Bank had identified Europe’s debt problems as one of the darkest clouds on Australia’s economic horizon.

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Profile

Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.

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THE MARKETS

All Ordinaries	5156.200	-29.200	-0.56%
S&P 500	1666.29	-1.18	-0.07%
Aud To Usd	0.9819	N/A	N/A

Bhp Blt Fpo	34.830	+0.040	+0.11%
Suncorp Fpo	12.710	+0.070	+0.55%
Csl Fpo	60.850	-0.650	-1.06%
Woodside Fpo	37.660	-0.620	-1.62%
Newcrest Fpo	15.600	+1.040	+7.14%