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Weekly Economic Commentary

Weekly Economic Commentary

Categories: General, General

This week will be a little different, with quarterly GDP data released before the Reserve Bank meets next week (normally, GDP data comes out after the RBA meets), which will give the RBA Board an additional element to consider. However, most economists don’t think there will be another follow-up rate cut – most are thinking the RBA will wait for the next CPI data release in late July before considering another rate cut at their August meeting.

Instead, all the focus is on whether the US raises rates on 16 June after US Federal Reserve Chair over the weekend endorsed recent comments that it would be “appropriate” for the Fed to raise rates if economic growth picks up as expected and the labour market continues to improve.

The probability of a US rate hike in June is 30% and increases to 60% in July.

Source: Rural Bank

 

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