17 May 2019 Bob Cunneen, Senior Economist and Portfolio Specialist Sources: Reserve Bank of Australia and Datastream. A key strength of the Australian economy has been the labour market. In the past year to April 2019, there has been robust jobs growth exceeding three hundred thousand. Australia’s unemployment rate has edged down from 5.5% in…

Highlights: The US labour market continues to tighten but the Fed is concerned that a cycle of perpetually low inflation expectations could reduce monetary policy flexibility. Sentiment in Europe continues to deteriorate, with inflation softening in April and the manufacturing sector in contraction. Despite zero growth in the CPI for the March quarter, the RBA…

Which key events have been driving markets? Watch this video of Senior Economist Bob Cunneen in discussion with Portfolio Specialist, Sinead Rafferty.

8 May 2019 Bob Cunneen, Senior Economist and Portfolio Specialist RBA cash interest rate vs leading indicators Source: Reserve Bank of Australia and Datastream. The Reserve Bank of Australia (RBA) is under considerable pressure to cut interest rates. This seems extraordinary given that Australia’s cash interest rate stands at a low 1.5% (blue line). However…

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The outlook for the global economy remains reasonable, although the risks are tilted to the downside. Growth in international trade has declined and investment intentions have softened in a number of countries. In China, the authorities have taken steps to…