News Bulletin
Will you plant a tree this Sunday?
In the news this week, National Tree Day hopes to make a difference; the man who had a retirement village all to himself; and how many brickies does it take to build a house?
Too Soon to be Certain of Recovery
The Reserve Bank of Australia (RBA) believes it is "too soon" to be certain that the global economy is on the road to recovery, the central bank's latest board minutes show.
The RBA left the cash rate unchanged at three per cent for the fifth straight meeting on September 1, as board members pondered whether a raft of local and overseas data presented over the previous month was confirmation of an economic recovery.
"Members concluded on balance that the global economy was most likely on a sustained, if modest, recovery path, though it was still too soon to be confident of this assessment," the minutes said.
The minutes, published at 1130 AEST on Tuesday, repeated comments from the August board meeting saying that if the improved prospects for economic growth were realised, the central bank would at some stage lift the cash rate from its current 49-year low.
"At the previous meeting, members had agreed that if the economy continued to evolve as in the latest forecasts, the Bank would in due course need to adopt a less expansionary policy stance," the minutes said.
"The information at this meeting suggested that economic conditions were indeed evolving broadly in that way.
"Nonetheless, some uncertainty remained about the outlook both abroad and at home."
The minutes said information presented to board members at the meeting "showed that the situation in the global economy was continuing to improve".
Gross domestic product (GDP) in the Asian region had been much stronger than elsewhere, while there were some "upside surprises" in countries such as Germany and France, the minutes said.
However, recent data on the Chinese economy was "somewhat mixed" - car sales rose and export volumes increased, but growth in industrial production, fixed asset investment and credit was estimated to have slowed.
"An important question for members was whether the global economic improvement would be sustained, or whether it was mainly a reflection of the strong macroeconomic stimulus that had been applied over the past year and might in due course fade," the minutes said.
Locally, the board members noted measures of consumer sentiment, business sentiment and business confidence had risen, while the deterioration in the labour market had been less than feared earlier in the year.
"Liaison with retailers suggested that household spending had softened somewhat in July but had been better in August," the minutes said.
On financial markets, the minutes said "the extreme risk aversion prevailing in global markets in the wake of the Lehman Brothers collapse last year had dissipated".
"Investors had become more confident, which was evident in the bounce back in global equity prices," the minutes said.
As it did at the August meeting, board members again noted that the decision on cash rate movements involved "balancing the risk of over-staying an accommodative stance, and that of prematurely tightening and adversely affecting confidence and demand".
"The meeting concluded that the balance was best struck by leaving the cash rate unchanged for the time being, pending further evaluation of incoming information at future meetings," the minutes said.
Supplied by AAP
One for me, one for you
A million new native trees and shrubs planted this weekend - it's not such as big task, according to National Tree Day organiser Planet Ark.
Planet Ark, in conjunction with Toyota, is calling on all Australian families to give back to the environment and offset a year of their home's average lighting needs by getting involved in National Tree Day on Sunday 1 August.
Outlook takes pressure down
Building commencements are unlikely to rise much over the next few years, according to industry analyst and economic forecaster, BIS Shrapnel.
The company's Building in Australia 2010 report shows that as the positive effect of fiscal stimulus programs fades, there will be less upward pressure on interest rates.
Still not enough brickies
Things are improving, but there are still not enough skilled tradespeople in the residential sector to boost the supply of new homes, according to the latest trade availability figures.
The June 2010 quarter HIA-Austral Bricks Trade Availability Index shows a continuing shortage of skilled tradespeople in eight of thirteen skilled trades.
Sustainability Awards deadline extended
Due to strong interest, the submission deadline for the 2010 BPN (Building Product News) Sustainability Awards has been extended to August 13.
Now in its fourth year, the BPN Sustainability Awards reward designers and builders for best practice in sustainable projects across Australia. In 2009, a record number of submissions were received, with the focus on sustainable building continuing to grow as issues like climate change gain further importance.
Kitchen needs a makeover?
Spruce up tired kitchen cupboards quickly by painting just the front panel of the doors and adding some new handles. Stenciling or painting motifs to the front of the cupboard doors will also give them a completely new look.
If you decide to replace the kitchen units, consider just buying new cupboard doors, as the frames are often standard.
One-man-town
Everyone likes having the house to themselves now and then, but is an entire village too much? A pensioner who has been the sole inhabitant of a luxurious gated retirement village for three years is finally rolling out the welcome mat for new neighbours.
When Les Harrington and his late wife first moved into the village, they looked forward to a busy social life, the UK Telegraph reported recently. However, as the financial market chilled and deals collapsed, the village was left a ghost town.
Since the death of his wife, Les has spent his days working on a novel, in the gym, the restaurant or strolling the carefully manicured gardens.
After three years of quiet, he jokingly welcomes the possibility of noisy neighbours with televisions and stereos blaring.
"I like to go outside and have a pipe of an evening and especially in the winter, it was quiet - it will be nice now to see a light and hear people," he told the Telegraph.