- RBA kept rates unchanged vs 25bp cut expected.
- Greece has agreed to lay off 15K public sector workers by the end of ’12. The three parties in the coalition government were apparently close to a deal that would cut ~20% off the country’s minimum wage. Leaders are also near a deal to cut pension benefits by ~20%.
US consumer credit surged ~20bn for a second month in a row, driven by non-revolving, student loans. Aggregate consumer credit growth is now close to prior cycle averages. This chart of the breakdown of consumer credit growth shows how much the non-revolving category is contributing to re-leveraging: