The minutes from the Reserve Bank of Australia’s March meeting indicate there is potential for further rate cuts, despite its decision to keep the cash rate at 3%.
The RBA’s decision was influenced by varying factors ranging from improving global economic conditions, rising asset prices in Australia and the growth rates of the Australian economy.
“Given the economic outlook, the Board considered it appropriate that the stance of monetary policy should be accommodative. After six cash rate reductions since late 2011, lending rates were close to the historically low levels of 2009 and clearly below normal level.
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“Global financial market conditions remained very accommodative, with expansionary monetary policies contributing to rising asset prices over recent months. The response of financial markets to political developments in the United States and Europe had been muted over the past month,” the minutes said.
TPG shares sky-rocket on profits announcement
TPG Telecom announced this morning a first half-yearly net profit increase of 41% to $78.293 million, causing the telco’s shares to jump 5.6% to $2.83 at midday.
The high profits also saw TPG’s board of directors announce a 27% increase to the company’s interim dividend to 3.5c a share, fully franked.
The company’s revenue also rose 10% to $357 million and subscriber numbers to the telco increased by 36,000 people in the six months to January.
Shares bounce back after Cyprus bailout reaction
Local shares have recorded a positive morning, despite modest falls across the globe as world financial markets react to a bailout plan announced for Cyprus.
The benchmark S&P/ASX200 index was up 36.2 points or 0.8% to 5,053.6 at 12.00 AEST, while in the United States the Dow Jones Industrial Average fell 62 points or 0.4%