A columnist in the Australian Financial Review today says the increase in capex plans for next financial year along with the jump in building approvals will mean theReserve Bank is on hold at their next meeting (Tuesday June 4):
- The capex figures yesterday showed that mining and manufacturing investment plans have been scaled back, but total capital spending should still grow in 2013-14
- Mining investment is still in the process of plateauing, rather than falling
- This supports domestic demand in the short run
Capex and dollar should keep rates on hold Australian Financial Review (gated)
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I’m not expecting a rate cut on Tuesday
