ThreeSixty Research Market Update – May 2019

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…

Read More

Chart of the week: Should the Reserve Bank cut interest rates to support Australia's economic growth?

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…

Read More