Mixed signals from reserve bank ahead of unemployment data this week

As millions sweat on the potential for interest rate cuts, there are mixed signals from the reserve bank.

Transcript

00:00We'll find out about the direction of interest rates when unemployment data comes out later

00:07this week.

00:08There are already competing views.

00:10Andrew Hauser looks like Wolverine became an economist and he talks sharply as well.

00:16He said today you don't have to be mad or a fanatic to think that rate cuts could be

00:20coming, but there are worries about how much room there is to go lower.

00:25Adding to that concern is the central bank's forecast of inflation rising to hit 3.7%

00:31by mid-year.

00:33Even its preferred measure, the trimmed mean that excludes volatile items, will breach the

00:38target band where the RBA wants it.

00:41So don't hold your breath.

00:43American markets lifted before the weekend, which brought news of progress to end the US

00:48government shutdown.

00:50Our dollar climbed on those hopes.

00:52Not only is the Aussie considered a proxy for the health of the Chinese economy, but

00:56for global risk in general, because we're so dependent on commodity exports.

01:02And the value of our magic iron ore rocks was flat, but gold is back above US$4,000 an ounce.

01:09ANZ shares soared, even though profit was down 10% to $5.9 billion, hit by the cost of sacking

01:173,000 to $4,000 people and wrapping up long-running disputes with regulators.

01:23All of our big four banks have now reported their results.

01:26Income up, but profit down as technology costs and bad loans rise.

01:33And that's finance.