21 Quotes by Alan Oster

On the other hand, export volumes benefit from increased capacity and a lower Australian dollar partly offset by some moderation, but sustained trading partner growth during 2006-2007.

Businesses continue to look at the future with some skepticism. Companies again report weaker employment outcomes in December, while capital spending also weakened somewhat. The official cash rate is even more firmly on hold for the foreseeable future.

Business concerns about the potential for a sharp fall in future activity have continued to ease.

Business appears increasingly concerned that further weakness is in prospect. The Reserve Bank is very much on hold, weighing the higher inflation reality against the prospect of further slowing in domestic demand and a mild deterioration in the labor market.

The pace of economic activity is continuing to moderate. The Reserve Bank is very much on hold, watching both the inflation outlook and domestic demand over the remainder of 2005 and well into next year.

Overall, we still see the official cash rate being increased by around 1.25 percent in total, bring the rate back to around 5.5 percent by mid/early 2003.

While the Australian economy continues to report sub-trend growth, the December results reinforce the point that it is still performing reasonably well. Conditions improved in December, driven by stronger-than-expected trading and profitability.

This says to me that interest rates are firmly on hold. This economy is slowing down and there may be a bit more weakness to come.

While the RBA might engage in occasional bouts of jawboning, we see little prospect of the RBA moving in either direction for some considerable period. That, indeed, was the main message out of yesterday's monetary policy statement.