Reserve Bank of Australia Annual Report – 1981 Calendar of Official Actions
(Announcement dates are used in most cases)
1980
30 June
The trade-weighted index of the value of the Australian dollar was 85.0 (May 1970 = 100). Values of the index at the end of each month in 1980/81 are shown below:
| July | 85.5 | January | 87.5 |
|---|---|---|---|
| August | 85.8 | February | 88.2 |
| September | 85.8 | March | 88.8 |
| October | 86.2 | April | 89.5 |
| November | 86.8 | May | 90.8 |
| December | 87.1 | June | 92.9 |
7 July
Two new tap stocks of Commonwealth Government securities were introduced. A further nine were introduced during 1980/81. Some details are provided below:
| Date of Introduction |
Tap Stock No. |
Date of Maturity |
Coupon Rate (% p.a.) |
Initial Yield (% p.a.) |
Date Withdrawn |
|---|---|---|---|---|---|
| 7 July | 4 | Nov 82 | 11.5 | 11.57 | 5 Aug 80 |
| 7 July | 5 | June 90 | 11.7 | 11.80 | 10 Dec 80 |
| 21 Aug | 6 | Feb 83 | 11.4 | 11.54 | 6 Feb 81 |
| 21 Aug | 7 | Nov 84 | 11.5 | 11.71 | 7 Nov 80 |
| 14 Nov | 8 | May 82 | 11.5 | 12.45 | 21 Nov 80 |
| 26 Nov | 9 | Sept 82 | 11.5 | 12.44 | 6 Mar 81 |
| 18 Dec | 10 | Dec 87 | 12.0 | 12.64 | 9 June 81 |
| 9 Feb | 11 | May 83 | 12.5 | 13.10 | 8 May 81 |
| 9 Mar | 12 | July 84 | 12.5 | 13.10 | 9 July 81 |
| 11 May | 13 | April 83 | 12.5 | 13.10 | |
| 10 June | 14 | May 88 | 12.5 | 13.10 |
21 July
A new series of Australian Savings Bonds, Series 17, was issued. A further two series were introduced during the year. Some details are provided below:
| Date of Introduction |
ASB Series No. |
Date of Maturity |
Coupon Rate (% p.a.) |
Date Withdrawn |
|---|---|---|---|---|
| 21 July | 17 | 1 Apr 88 | 10.25 | 2 Dec 80 |
| 8 Dec | 18 | 1 Aug 88 | 11.50 | 23 Mar 81 |
| 24 Mar | 19 | 1 Dec 88 | 12.25 |
6 August
The rate of interest applying to the Income Equalisation Deposit Scheme for primary producers, which had remained unchanged since the scheme was introduced in 1976, was increased from 5 to 7 per cent.
19 August
The Commonwealth Government's Budget for 1980/81 was presented. Estimates of the major aggregates were:
- outlays of $36,037 million (13.7 per cent higher than in 1979/80);
- receipts of $34,471 million (16.7 per cent higher than in 1979/80);
- a total deficit of $1,566 million with a domestic surplus of $39 million (the realised deficits in 1979/80 were $2,034 million and $567 million, respectively).
28 August
The interim report of the Committee of Inquiry into the Australian Financial System was tabled in Federal Parliament.
5 September
The Loan Council approved the introduction of an additional step in interest rates on the scale of maximum borrowing rates for local and semi-government authorities. The new step was created by reducing the maximum rate for borrowings of four years to less than seven years by 0.1 of a percentage point to 12.0 per cent for public issues and 12.3 per cent for private placements.
18 September
The Commonwealth completed arrangements with Deutsche Bank for a DM200 million (approximately $96 million) private placement on the German capital market. The purpose of this borrowing was to re-finance a Commonwealth loan of DM200 million due to mature on 1 October.
2 December
It was announced that, effective 3 December:
- The maximum interest rate charged by trading banks on overdrafts with limits of less than $100,000 would be raised from 10.5 per cent per annum to 12.5 per cent per annum. Comparable increases would apply to interest rates on term and farm development loans of less than $100,000.
- An understanding had been reached with the banks that the interest rate increases would not apply to those adversely affected by the drought in drought-declared areas for the duration of the drought.
- The maximum rate on personal instalment loans would be increased from 7.75 per cent per annum (flat) to 8.75 per cent per annum (flat).
- The maximum rate of interest charged by savings banks on loans of less than $100,000, other than loans for owner-occupied housing, would be increased from 10.5 per cent per annum to 12.5 per cent per annum.
- The maximum rate charged by savings banks on loans for owner-occupied housing would be increased from 10.5 per cent per annum to 11.5 per cent per annum.
- Within these ceilings, each bank would determine the rates to be applied to its loans.
- The ceilings on interest rates offered by trading and savings banks on deposits would be removed.
18 December
Effective 6 January, the Bank raised the Statutory Reserve Deposit ratio of the major trading banks from 6.0 per cent to 7.0 per cent. This action was taken against the growth in bank liquidity in the early months of 1980/81. It supported a request to banks for continued restraint in their lending, in line with the intention for monetary policy to moderate growth in money and credit.
1981
28 January
The Treasurer announced that the Government, having concluded its review of the Banking (Savings Banks) Regulations, had decided to defer any significant change until the Government has had the opportunity to consider the final report and recommendations of the Committee of Inquiry into the Australian Financial System.
5 February
The Governor-General granted the Australian Bank Limited unconditional authority to carry on banking business in Australia.
28 May
Negotiations were completed for a loan of Y20,000 million (approximately $78 million). The loan, for a term of 12 years, carried a coupon of 8.5 per cent per annum.
15 June
The Treasurer gave his consent, under Section 63 of the Banking Act, for the amalgamations proposed between the Bank of New South Wales and The Commercial Bank of Australia Limited, and between The National Bank of Australasia Limited and The Commercial Banking Company of Sydney Limited.
19 June
The Loan Council agreed to State Government programmes for 1981/82 of $1,307.25 million (the same as in 1980/81) and to a borrowing programme for the States' larger authorities of $2,098.3 million (an increase of 11.2 per cent on 1980/81). The latter figure included borrowings of $806.7 million to finance infrastructure.