Macroeconomics round up: rate news from Aussie and India, bad news for Puerto Rico and a slump in Greek markets
Jason Walls breaks down the week's biggest news in macroeconomics on NBR Radio, and on demand on MyNBR Radio.
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Join Jason Walls as he breaks down the week's biggest news in macroeconomics on NBR Radio, and on demand on MyNBR Radio.
The decision from the Reserve Bank of Australia (RBA) to keep its rates at 2% was no surprise, NBR reporter Jason Walls says.
“The markets were not pricing a cut in and most – if not all – analysts were forecasting rates to stay put,” he says.
For the first time in 18 months, RBA governor Glenn Stevens did not signal that the Aussie dollar was too high in his statement.
India’s central bank also kept rates on hold.
Mr Walls says at 7.25%, India’s interest rate is one of the highest in the Asia region.
Puerto Rico was also making waves this week, Mr Walls says.
The island nation, which is a US commonwealth, is now $72 billion in the hole after failing to make debt payments this week and is now in default.
Although there is some speculation the US may bail out Puerto Rico, Mr Walls says this would be “political suicide.”
Also this week, the Greek stock market reopened after being closed for five weeks.
The ASE stock index plummeted 23%, with banking shares down by 30%.
But there was a silver lining, Mr Walls says.
“Both Greece and its lenders said on Tuesday they were optimistic they could broker a deal within days on a multi-billion euro bailout.”
A bailout, worth up to €86 billion, must be settled by August 20 if Greece is to pay off the €3.5 billion worth of debt to the European Central Bank that matures on that day.
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NBR Radio
Fri, 07 Aug 2015
Fri, 07 Aug 2015
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Macroeconomics round up: rate news from Aussie and India, bad news for Puerto Rico and a slump in Greek markets
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