Highlights: The US economy remains supported by robust consumer spending and jobs growth, but trade uncertainty is having a negative effect on business investment. Markets strongly expect the US Fed to lower interest rates at its September meeting as Powell stated the Fed would “act as appropriate to sustain this expansion.” The UK’s new prime…

Bob Cunneen, Senior Economist and Portfolio Specialist Sources: Opening Statement to the House of Representatives Standing Committee on Economics RBA Governor Philip Lowe, 9 August 2019, and Datastream.  The Australian economy is still dawdling along in the slow lane. Australia’s real economic growth was only 1.4% for the year to June 2019 (red line). Consumer spending…

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent.   The outlook for the global economy remains reasonable, although the risks are tilted to the downside. The trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans due to the increased uncertainty….

Bob Cunneen, Senior Economist and Portfolio Specialist   Sources: Australian Bureau of Statistics, RBA Governor Dr Philip Lowe, and RBA Statement of Monetary Policy, August 2019. Australian wage growth is barely crawling along. The Wage Price Index (WPI) showed a subdued 2.3% annual change to June (blue line). This modest gain in wages helps explain why…

  Highlights: Central banks have engaged in a policy reversal in response to weaker economic growth and the uncertainties associated with the US-China trade conflict. US inflation has inched higher, but core CPI measures and sluggish wages growth still point to spare capacity in the labour market. The UK’s new prime minister Boris Johnson will…

  Which key events have been driving markets? Watch this video of Senior Economist Bob Cunneen in discussion with Portfolio Manager, Myooran Mahalingam. August Economic Update – view video >>

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent. The outlook for the global economy remains reasonable. However, the increased uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy remain tilted to the downside. In most advanced economies,…

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.00 per cent. This follows a similar reduction at the Board’s June meeting. This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term target.   The outlook for the global…

Highlights: Softer US inflation and PMI figures have dimmed the growth outlook, although further labour market tightening may avert a Fed rate cut for the time being. The trade situation remains the key issue for the global economy, with uncertainty affecting investment and bolstering the case for monetary easing. European manufacturing continues to decline, while…

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