1800 045 166
Economic Update – January 2018
The RBA’s February monetary policy statement was undeniably more bullish compared to its December release, but nevertheless the board opted to keep the cash rate on hold at 1.50%, with inflation still low but expected to move higher.
Economic Update – December 2017
The RBA has maintained the cash rate at 1.50% for well over a year, and appears content to wait and see how high other central banks go and how quickly. Although the September quarter GDP data showed growth of only 2.8% over the year with consumption spending flat, a range of other releases have provided some grounds for optimism.
Economic Update – November 2017
The Australian economy grew at just below its trend growth rate in the September quarter, supported by a boost in consumer spending. While advanced economies including the US, Europe, Canada and the UK have begun the task of tightening policy, monetary conditions remain expansionary.
Economic Update – October 2017
At its November meeting the RBA left the cash rate on hold at 1.50%, noting that monetary policy in other advanced economies is becoming less accommodating. The bank’s forecast for growth is largely unchanged, with GDP growth expected to pick up to 3.0% over the next few years.
Economic Update – September 2017
At its October meeting the RBA left the cash rate on hold at 1.50%, where it has remained since the most recent downward move in rates more than one year ago. The household side of the economy remains a challenge, with consumers unable to shake their pessimism, and wage and consumer price growth still stubbornly low.
Economic update – August 2017
With solid GDP growth and continued improvement in the labour market, the Australian economy appears well positioned despite wage weakness. The RBA is possibly even more bullish on employment than in previous months, noting that stronger labour market growth should see a pickup in wages over time.
Economic update – July 2017
The Australian economy appears well positioned with an improving employment situation, strong manufacturing growth, and a robust retail sector. However, the improved employment outlook contrasts with the lack of growth in wages, which remains at a record low.
Economic update – 2016/17 review
Financial markets started the financial year 2016/17 in a state of surprise coming off the Brexit result just a few days before. Markets were also looking ahead to elections in Europe, as well as the US Presidential election with the contest of Clinton vs. Trump. As things turned out, the European elections proved more benign than feared, while the US election delivered a more unexpected result.
Economic update – May 2017
The Budget’s bank levy, weaker commodity prices and signs of a slower domestic economy all contributed to the local equity market falling in May. Interestingly, the Australian dollar did not fall as much as these developments might have suggested. However, the outlook for commodity prices and both US and Australian interest rates, may indicate that a further weakness of the Australian dollar is likely in coming months. (more…)
Federal budget – May 2017
“Fairness, security and opportunity” is the Treasurer’s slogan for 2017 Federal Budget! Some have noted that this seems to be an unusual Liberal Budget in that it seeks to achieve a number of outcomes more commonly associated with Labor ideologies.