Bob Cunneen, Senior Economist and Portfolio Specialist Source: Australian Bureau of Statistics (ABS). The Reserve Bank of Australia (RBA) has cut interest rates again by 0.25%. This now sees the official cash interest rate fall to only 1%. This seems extraordinarily low given that the Australian share market has generated a robust 20% return in the…

Bob Cunneen, Senior Economist and Portfolio Specialist Sources: Federal Reserve, CME Group. After three years of raising US interest rates, the Federal Reserve (Fed) is now signalling a change in direction. The Fed’s commentary indicates that “uncertainties” over global growth and trade tensions as well as “muted inflation pressures” could warrant lower US interest rates….

Bob Cunneen, Senior Economist and Portfolio Specialist Sources: CNBC interview on 10 June 2019 Datastream. * The US real interest rate is calculated by taking the Federal Funds mid-rate, then subtracting an average of core CPI annual inflation and the 10 year break even inflation measure from the bond market. President Donald Trump is annoyed…

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

Highlights: The US-China trade dispute has raised fears of a prolonged game of one-upmanship that could result in long-term damage to the global economy. US Fed officials believe some of the recent weakness in inflation data may be temporary, but some have expressed concern about a cycle of low inflation expectations. Sentiment in Europe remains…

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.25 per cent. The Board took this decision to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. The outlook for the global economy remains reasonable, although the downside risks stemming from the trade…

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…