World Bank

A World Bank report has come out this morning alluding to the possibility of a double dip recession if European debt is not brought under control

RBA
Glen Stevens spoke in Western Sydney yesterday and delivered a reasonably upbeat speech. He did however warn against household debt levels rising from their current position but indicated current levels were manageable. In Q&A he indicated that the cash at 4.50% in at a 'Normal' level. This would indicate no move above normal until clear signs of strong growth (including globally) and inflationary pressures.

In light of current global developments we will be sending an extended commentary out this afternoon.