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Minutes of the Monetary Policy Meeting of the RBA
Members began their discussion by observing the extreme volatility in financial markets over the past month, which reflected fears about a slowdown in the global economy and escalation of sovereign debt tensions in the United States and Europe. These concerns had led to particular focus on the financial strength of European banks. Major share price indices had fallen by around 15 per cent, with even bigger declines in Europe. Financial stocks had been particularly affected. Government bond yields in the developed economies had fallen to new lows, with the 10-year US Treasury yield and German Bund yield both falling ... (full story)
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