Euro debt may spark more global jit­ters

The Pak Banker - - Company & Boss News -

FRANK­FURT: The Re­serve Bank has ac­knowl­edged Europe's fast-spread­ing debt prob­lems are emerg­ing as a threat to the Aus­tralian econ­omy and could set off a round of jit­ters in global credit mar­kets.

The dom­i­nance of Europe in dis­cus­sion at the RBA's last monthly board meet­ing sug­gests it is now pay­ing closer at­ten­tion to how the debt cri­sis is play­ing out. The De­cem­ber 7 meet­ing was held be­fore last week's move by rat­ings agency Moody's to cut Ire­land's credit rat­ing to three notches above junk.

But min­utes of the meet­ing, re­leased yes­ter­day, sug­gest the RBA is stick­ing to its medi­umterm view of the do­mes­tic econ­omy, with growth here un­der­pinned by the con­tin­ued strength of Asia's key driv­ers, China and In­dia. The min­utes pro­vide econ­o­mists with an in­sight into the cen­tral bank's think­ing on the fac­tors bear­ing on mon­e­tary pol­icy. Whether the RBA would have left the cash rate at 4.75 per cent, as it did, on De­cem­ber 7 in the ab­sence of Europe's trou­bles is not clear from the min­utes. -PB News

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.